Taiwan Semiconductor Manufacturing Company Limited is trading near 84, showing continued strength after completing a clear Wave 1 and Wave 2 structure and now attempting to build momentum into a developing Wave 3 phase tied to global semiconductor demand and AI-driven chip expansion.

The initial Wave 1 advance carried TSM from approximately 12 up to 78.

78

That move represented a strong impulsive expansion phase, reflecting rising demand for advanced semiconductors, AI chip manufacturing leadership, and sustained global reliance on Taiwan’s foundry capacity for cutting-edge chip production.

Following that advance, TSM entered a Wave 2 correction from 78 down to approximately 50.

50

That retracement reset momentum and allowed the market to consolidate prior gains while preserving the larger bullish structure. Wave 2 pullbacks in high-quality semiconductor leaders often serve as accumulation phases before the strongest part of the trend begins.

Now trading near 84, TSM appears to be emerging from that corrective base and entering what may be the early stages of Wave 3 expansion.

From a Fibonacci extension perspective, the key upside targets for the developing Wave 3 structure remain:

157
222

These levels represent the next major technical objectives if the current impulsive structure continues to develop in alignment with broader semiconductor sector strength.

Fundamentally, TSM remains one of the most critical companies in the global semiconductor ecosystem, serving as the primary manufacturing hub for advanced chips used in AI accelerators, high-performance computing, smartphones, and data center infrastructure. This positioning places the company directly at the center of the global AI hardware buildout cycle.

That macro backdrop continues to support strong directional trends in TSM over multi-year horizons, especially during periods of accelerating semiconductor capital investment.

From a technical standpoint, the move from 50 up into the mid-80s suggests that the Wave 2 correction has fully resolved and that buyers are beginning to reassert control. However, early Wave 3 phases often include consolidation as the market builds structure before attempting larger impulsive extensions toward Fibonacci targets.

Psychologically, this phase reflects a transition from accumulation and recovery into early momentum participation. Traders who entered near the Wave 2 lows are often beginning to hold positions more firmly, while new participants wait for confirmation of sustained breakout behavior before committing more aggressively.

The key Elliott Wave structure remains:

With TSM currently trading near 84, the structure remains firmly constructive, and the market appears to be transitioning from corrective stabilization into the early stages of a potential extended Wave 3 advance.