What's Going On With Taiwan Semi Stock On Tuesday?

Taiwan Semiconductor Manufacturing Co TSM is significantly expanding its operations in response to growing demand in the AI, 5G, server, and data center markets.

The company remains engaged in its geographical expansion while maintaining Taiwan as its base.

Acter Group Co, a semiconductor equipment and chemicals supplier, is accelerating its overseas expansion, primarily focusing on Japan and Southeast Asia to support these demands.

The expansion is a strategic response to geopolitical risks and the need for diversified manufacturing sites, Taipei Times reports.

Also Read: What’s Going On With Taiwan Semi Stock On Monday?

Acter Group Co-President Wang Chun-sheng emphasized the company’s strategy to enhance its global footprint.

Acter’s significant clients include TSMC, United Microelectronics Co UMC, Intel Corp INTC, Nvidia Corp, and Alphabet Inc’s Google GOOG GOOGL.

In addition to Asia, Acter is considering expansion projects in Mexico and the US, aiming to follow their clients’ geographical diversification.

Acter prioritizes Southeast Asia, Japan, and India for overseas expansion.

Last month, Acter’s subsidiary, Rayzher Industrial Co, established a branch in Kumamoto, Japan, to support TSMC’s fab operations.

Rayzher is also planning a second overseas site in Germany, where TSMC will likely build a new 12-inch fab through a joint venture.

Taiwan Semiconductor gained 68% in the last 12 months.

Investors can gain exposure to the semiconductor sector via First Trust Nasdaq Semiconductor ETF FTXL and SPDR S&P Semiconductor ETF XSD.

TSMC Stock Prediction For 2024

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Taiwan Semiconductor, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Taiwan Semiconductor, the 200-day moving average sits at $120.13, according to Benzinga Pro, which is below the current price of $170.84. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

Price Action: TSM shares traded higher by 1.51% to $170.35 at the last check on Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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