Taiwan Semiconductor Stock Sees Uptrend Despite Shift in Global Market Capitalization

Taiwan Semiconductor's ADRs rose 4.12% to $441.40 on Monday, valuing the chipmaker at $2.289 trillion. Meanwhile, SpaceX climbed another 19.6% to $192.50, lifting its market capitalization to $2.519 trillion after raising about $75 billion in the world's largest IPO.

Nasdaq futures climbed 0.68%, while S&P 500 futures gained 0.16% ahead of the opening bell. The positive sentiment supported large-cap technology stocks, including leading semiconductor companies.

Taiwan Semiconductor and Amkor Technology Inc. announced a 10-year partnership to expand advanced semiconductor packaging and testing in Arizona. Under the agreement, Taiwan Semiconductor will procure advanced packaging and testing services from Amkor, helping increase U.S. capacity for AI, high-performance computing, and other advanced chips.

The partnership supports Taiwan Semiconductor's chip fabrication facilities and Amkor's advanced packaging and test campus, both under development in Arizona. Taiwan Semiconductor remains in a well-defined long-term uptrend, with the stock trading about 2.6% above its 20-day simple moving average.

The relative strength index (RSI) stands at 53.56, a neutral reading that indicates the stock is neither overbought nor oversold. The broader trend also remains favorable, with the 20-day SMA above the 50-day SMA and the golden cross formed in June 2025 remaining intact.

The company's next earnings report is expected on July 16, 2026. Wall Street expects earnings per share of $3.69, up from $2.47 a year earlier, on revenue of $39.76 billion versus $30.07 billion last year.

Taiwan Semiconductor shares were up 1.77% at $433.36 during premarket trading on Wednesday. The stock trades at about 36.6 times forward earnings, reflecting its premium valuation. Analysts maintain a consensus Buy rating with an average price forecast of $442.50.