Why Taiwan Semiconductor Manufacturing Stock Is Jumping Today

Taiwan Semiconductor Manufacturing (NYSE: TSM) stock is moving higher Thursday in a bullish day for tech sector valuations. The company's share price was up 4% as of 2 p.m. ET. At the same point in the day, the tech-heavy Nasdaq Composite index was up 1.8%.TSMC stock is jumping today thanks to strong quarterly reports from Microsoft and Meta Platforms. In addition to posting sales and earnings results that beat Wall Street's expectations, both tech giants gave updates on capital expenditures (capex) that bode well for the artificial intelligence (AI) chip space.Microsoft and Meta are two of the biggest players in AI software. They're also two of the biggest purchasers of hardware for AI -- with Microsoft ranking as Nvidia's largest customer and Meta ranking as its second-biggest buyer. TSMC manufactures Nvidia's advanced processor designs and key AI chips from other semiconductor designers. Accordingly, TSMC investors often look to Microsoft's and Meta's capex data for demand indicators -- and they got some encouraging news with yesterday's quarterly reports.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool