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Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) is having a rough Tuesday morning. The stock is trading lower as investors take profits amid a broader market pullback, with Nasdaq futures down 1.13% and S&P 500 futures shedding 0.42%.
But while the market is dragging the shares down, the company itself is quietly putting up some impressive numbers from its Arizona operations. Let's dig into what's happening.
According to Taiwan's Money UDN, Taiwan Semiconductor's Arizona operations generated about 36.1 billion New Taiwan dollars ($1.13 billion) in cumulative profit during the first half of 2026. That's a massive leap from the 16.1 billion New Taiwan dollars ($504.6 million) the Arizona hub produced for all of 2025.
Breaking it down further, the Arizona operation generated about 18.8 billion New Taiwan dollars ($589.2 million) in first-quarter profit, which included roughly 16.9 billion New Taiwan dollars ($529.7 million) in investment income.
Money UDN also reported that construction of Taiwan Semiconductor's third Arizona wafer fab began in May. This facility will support 2-nanometer and A16 production, with mass production potentially starting around 2028.
Meanwhile, the second Arizona fab, designed for 3-nanometer production, is complete. Equipment installation is expected to begin in the second half of 2026, with mass production targeted for the second half of 2027.
Chairman C.C. Wei previously said the company would add $100 billion to its U.S. investment plans, bringing its total planned commitment to $265 billion. That's a lot of chips and a lot of cash.
So where does the stock stand technically? Taiwan Semiconductor remains in a longer-term uptrend. The stock is trading 15.2% above its 200-day simple moving average of $364.14. However, it is 1.3% below its 50-day SMA of $424.88.
The shares are also near their short-term trend levels. The stock is roughly flat against its 20-day exponential moving average of $419.39 and remains above its 20-day SMA of $413.57.
Here's the interesting part: the 20-day SMA remains below the 50-day SMA, signaling near-term weakness. But the 50-day SMA remains above the 200-day SMA, which supports the longer-term bullish trend. So the short-term picture is a bit murky, but the long-term story is still intact.
Resistance sits near $477, just below the 52-week high of $479. Key support is around $385.50, a previous area where buyers stepped in.
TSM Stock Price Action: Taiwan Semiconductor shares fell 2.72% to $419.26 in Tuesday's premarket trading, according to market data.
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