Taiwan Semiconductor (NYSE:TSM) has just triggered a technical Death Cross — and it's not the only signal weighing on investor sentiment.
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Technical Warning signs Pile Up For TSM Stock
Technically, things look bleak. With shares down 25% year to date and 11% in the past month, TSM stock has sunk below its eight, 20, and 50-day simple moving averages—a textbook sign of a strongly bearish trend. Even the 200-day simple moving average, at $184.40, sits far above TSM stock, at $150.69, offering little comfort.
The Moving Average Convergence Divergence (MACD) stands at a negative 9.07, flashing more red, while the Relative Strength Index (RSI) at 37.85 signals it’s approaching oversold territory.
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A $100 billion Answer- But Is It Enough?
TSMC, to its credit, has committed over $100 billion to build five U.S. factories, on top of the $65 billion already pledged. Still, the market isn't exactly applauding. Investors are stuck between a death cross and a Trump tax threat – and both sides sting.
With mounting technical pressure and renewed political scrutiny, TSMC shares face a challenging path ahead. Investors may prefer to wait for signs of technical stability and greater policy clarity before reengaging.
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