Taiwan Semiconductor Manufacturing (TSM) is experiencing a surge in interest due to its strong positioning in the AI chip market, which is driving significant revenue growth. On December 10, 2024, TSMC reported robust November revenue growth, largely attributed to the increasing demand for AI chips. This demand is expected to continue as AI applications expand across various industries, bolstering TSMC's market position. Additionally, TSMC's unveiling of its advanced 2nm process technology at the International Electron Devices Meeting (IEDM) on December 17, 2024, has further solidified its reputation as a leader in semiconductor innovation, attracting investor attention.
Moreover, geopolitical developments are also playing a role in TSMC's market dynamics. On December 18, 2024, reports emerged about potential impacts from Trump's proposed tariffs on semiconductor stocks, including TSMC. While these tariffs could pose challenges, TSMC's strategic investments, such as the $20 billion Arizona chip fabrication plant announced on December 16, 2024, demonstrate its commitment to expanding its manufacturing capabilities and mitigating geopolitical risks. These factors collectively contribute to the positive sentiment surrounding TSMC, influencing the Direxion Daily TSM Bull 2X Shares ETF.
The Direxion Daily TSM Bull 2X Shares ETF (TSMX) is up 3.01% in pre-market hours on Wednesday, December 18, reaching $31.86 as of 9:00 AM ET.