Taiwan Semiconductor Stock TSM Gains 5% as AI Pricing Power and BofA’s $590 Target Lift Sentiment

Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) closed at $440.83, up 1.02% on the day, before extending gains in after-hours trading to $457.00, a further 3.67% jump.

The move comes as investors continue to weigh strong AI-chip demand, reported price increases across advanced nodes, and a bullish analyst target from Bank of America, which reportedly lifted its TSM price target to $590 from $490 while keeping a Buy rating.

AI Demand Keeps TSM in the Spotlight

TSMC remains one of the most important companies in the AI supply chain, manufacturing advanced chips for major players including Nvidia, AMD, Apple, and custom AI accelerator developers.

According to the reference article, TSMC’s May revenue rose 30.1% year over year to NT$416.98 billion, while CEO C.C. Wei has guided for full-year revenue growth above 30% in U.S. dollar terms.

The bullish case is being supported by three key themes:

• Strong AI accelerator demand
• Pricing power across advanced nodes
• Continued investment in next-generation packaging and process technology

Reports that TSMC may raise prices by 5% to 10% on advanced 5nm, 4nm, and 3nm production suggest demand remains firm despite broader concerns about AI-stock valuations.

BofA Target Adds Fuel to Taiwan Semiconductor’s Bull Case

BofA’s reported target increase to $590 gives TSM one of the more aggressive upside cases among large-cap semiconductor stocks.

The broader Wall Street view remains positive, with analysts highlighting TSMC’s dominant market share, AI exposure, and expanding advanced packaging roadmap. However, valuation risk remains a key concern, especially after the stock’s strong year-to-date rally.

TSM is trading near the upper end of its 52-week range, and investors are balancing earnings momentum against a premium valuation.

TSM Technical Analysis: Bulls Defend the Uptrend

From a technical perspective, TSM’s daily chart remains constructive.

The stock closed at $440.83, holding above nearly every major moving average. The 10-day EMA at $439.50, 10-day SMA at $436.01, 20-day EMA at $431.69, and 20-day SMA at $433.00 all show buy signals, confirming near-term support.

The broader trend is also bullish. TSM remains above its 30-day EMA at $424.37, 50-day EMA at $411.05, 100-day EMA at $384.30, and 200-day EMA at $343.86.

Momentum indicators support the positive setup. The RSI at 54.54 remains neutral, while MACD at 10.60 and Momentum at 12.88 both flash buy signals. The Hull Moving Average at $455.88 is the main short-term caution signal, acting as immediate resistance.

Key Levels to Watch for TSM Stock

• Resistance: $455.88, $457.00, $465.00, $476.31, $500.00
• Support: $439.50, $436.01, $433.88, $431.69, $424.37
• Bullish reversal level: A daily close above $456-$457
• Bullish continuation level: A break above $476
• Bearish risk level: A drop below $431

Can Taiwan Semiconductor (TSM) Stock Touch $500?

If TSM holds above the $431-$440 support zone, buyers may continue targeting the after-hours breakout area near $456-$457. A confirmed close above that range could reopen the path toward $465, then the prior high zone near $476.

A break above $476 would strengthen the case for a move toward the psychological $500 level.

However, failure to hold above $431 would weaken the near-term structure and could pull TSM back toward $424, where the 30-day EMA sits.