TSMC Reports 35% AI Chip Demand Increase During Middle East Conflict

TSMC’s demand for AI chips has risen by 35%, which could bolster the company’s revenue expectations. The stock has surged 7.19% in the past 24 hours, and the 20‑day simple moving average (SMA20) is positioned above the 50‑day SMA (SMA50), offering positive technical signals. However, the MACD indicator remains slightly below its signal line, suggesting a modest short‑term resistance. Overall, the news is expected to drive the share price higher over the next one to three days, though investors should avoid excessive buying pressure.

TSMC’s 35% increase in AI chip demand represents a favorable signal for one of ASML’s key customers. Technical indicators support a short‑term bullish bias: the stock has surged 11% in the last 24 hours, the MACD line sits above its signal line, and the 20‑day simple moving average (SMA20) is above the 50‑day SMA (SMA50). However, the relative strength index (RSI) is at 74.4, placing the stock in an overbought zone and suggesting limited upside in the near term. Consequently, a modest upward move for ASML over the next one to three days is anticipated. Risk factors include market volatility and competitive pressures within the sector.

The news highlights a sharp rise in AI chip demand at TSMC, a key supplier of NVDA, underscoring robust underlying demand. Technically, the share price sits above short‑term moving averages and the RSI is approaching the overbought zone, raising the risk of a short‑term pullback. Nevertheless, positive sentiment and an upward‑trending MACD support bullish pressure over the next few days. Confidence remains somewhat constrained by the overbought conditions.