Why Taiwan Semiconductor Stock Popped Then Dropped Today
Taiwan Semiconductor Manufacturing (NYSE: TSM) had a see-saw session on the market Tuesday. Shares of the global chip maker rose as much as 3.4% during the day, before settling down to a marginal (0.2%) decline at closing time. This movement was influenced by the latest activity of a famous investor.
On Tuesday, it was revealed that said investor, Cathie Wood of Ark Invest, had piled back into Taiwan Semiconductor. Ark Autonomous Technology and Robotics ETF snapped up 98,170 shares of the company. Previous to this, according to reporting from Bloomberg, Ark's funds had last held Taiwan Semiconductor stock in the fourth quarter of 2021.
The company's stock has become a hot item lately because of the popularity of artificial intelligence (AI). It almost goes without saying that advanced AI functionalities require quite a bit of processing power, so it's likely Taiwan Semiconductor will be a busy manufacturer of next-generation chips.
Source Fool.com
