TSMC Triggers Death Cross As Trump Tariff Threats Add To Investor Concerns

Taiwan Semiconductor TSM has just triggered a technical Death Cross — and it's not the only signal weighing on investor sentiment.

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Technical Warning signs Pile Up For TSM Stock

Technically, things look bleak. With shares down 25% year to date and 11% in the past month, TSM stock has sunk below its eight, 20, and 50-day simple moving averages—a textbook sign of a strongly bearish trend. Even the 200-day simple moving average, at $184.40, sits far above TSM stock, at $150.69, offering little comfort.

The Moving Average Convergence Divergence (MACD) stands at a negative 9.07, flashing more red, while the Relative Strength Index (RSI) at 37.85 signals it’s approaching oversold territory.

Trump Turns Up The Heat On Chipmakers

But here’s the kicker: just as TSM tries to steady the ship, President Donald Trump adds political torque. The president claimed he threatened the chip giant with a 100% tax if it didn't make chips in the U.S., reported Business Insider. "These chip companies are loaded," he said, slamming the CHIPS Act and boasting he didn't need to write checks to make things happen – just dangle tariffs.

A $100 billion Answer- But Is It Enough?

TSMC, to its credit, has committed over $100 billion to build five U.S. factories, on top of the $65 billion already pledged. Still, the market isn't exactly applauding. Investors are stuck between a death cross and a Trump tax threat – and both sides sting.

Investors seeking safer exposure to the chip sector may consider diversified ETFs such as the SPDR S&P 500 ETF Trust SPY, iShares Semiconductor ETF SOXX, or VanEck Semiconductor ETF SMH, which reduce reliance on any single, politically sensitive stock.

With mounting technical pressure and renewed political scrutiny, TSMC shares face a challenging path ahead. Investors may prefer to wait for signs of technical stability and greater policy clarity before reengaging.

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