TSMC stock is caught in a sharp technical correction despite a compelling fundamental narrative. Trading at $398.37, TSM sits below key moving averages with deteriorating momentum. Yet record Q2 results and accelerating AI-driven demand create tension between a weakening chart and a strengthening business.

Key takeaways

• TSMC stock closed at $398.37, well below its EMA20 ($428.20) and EMA50 ($420.60)
• Daily RSI at 39.11 approaches oversold territory with no bullish divergence visible
• TSMC has committed $265 billion total to U.S. investments, signaling high-conviction AI demand visibility
• Daily ATR of $20.64 warns that wide swings in either direction remain within normal…