Intel & TSMC Stocks Drop as Tariffs Push $100B U.S. Investment

Trump Confirms TSMC’s Massive U.S. Expansion

President Donald Trump is set to announce Taiwan Semiconductor Manufacturing Co. (TSMC)’s commitment to invest $100 billion in U.S. chip manufacturing during his term. Although speculation initially swirled in the crypto community about the nature of Trump’s investment announcement, it was ultimately tied to the semiconductor industry.

TSMC had already pledged over $65 billion for U.S. expansion, and now, with its first Arizona facility producing 4-nanometer chips, the company is significantly increasing its investment. As the world’s largest semiconductor manufacturer, TSMC supplies critical chips to Apple, Intel, and Nvidia, reinforcing its dominance in the industry.

TSMC Chart Daily – The 200 SMA Held As Support

Following the announcement, TSMC’s stock initially dropped, opening with a bearish gap and plunging 4% lower in morning trading. However, the 200-day SMA (purple) provided strong support, and as news of the investment spread, TSMC shares rebounded.

Intel’s Surprise Surge Fades After Initial Optimism

While TSMC stocks struggled early, Intel (INTC) saw the opposite reaction, opening 5% higher with a bullish gap. The spike followed reports that Nvidia and Broadcom are testing Intel’s production process, potentially paving the way for lucrative chip manufacturing contracts.

If these tests prove successful, Intel could secure hundreds of millions in semiconductor deals, a much-needed boost for its struggling chip-building division, which reported a $13.4 billion loss last year. Intel has long lagged behind TSMC in advanced chip manufacturing, but a successful partnership with Nvidia and Broadcom could revitalize its foundry business.

Intel Stock Chart Daily – Faces Resistance Despite Recent Rebound

Intel’s stock has been in a downtrend since 2021, when it peaked above $68. By July 2024, shares had plunged below $19, forming a solid support level. A strong February rally saw the stock surge nearly 40% from its lows, but last week, Intel fell back below the 100-day SMA (red), signaling renewed selling pressure.

Despite opening the day with a 5% gain, Intel erased all early advances by the session’s close and is now trading near unchanged levels. While the potential Nvidia and Broadcom deals offer hope, Intel still faces a tough road ahead in regaining lost market share.

Market Outlook: What’s Next for TSMC & Intel?

• TSMC’s $100 billion investment cements its role as a leader in U.S. semiconductor production, potentially increasing its market dominance.
• Intel’s ability to secure new contracts could be a game changer, but technical resistance remains strong. A sustained break above the 100-day SMA would be needed to confirm a bullish reversal.
• Semiconductor stocks remain volatile, with U.S. investment policies and AI demand continuing to shape the industry’s future.