Taiwan Semiconductor Manufacturing Co. stock rose 4.2% to NT$2,380 on Wednesday after the company's board on November 10 approved a set of resolutions that formalize a deeper strategic tilt into the AI ecosystem.
The board authorized investments of up to $500 million in Anthropic at its IPO price and up to $500 million in OpenAI preferred stock, amounting to a combined commitment of up to $1 billion. These approvals mark the first time TSMC is taking direct equity positions in AI model companies instead of limiting its role to manufacturing chips for those firms.
At the same time, TSMC reported record revenue for October 2026 of approximately NT$586.89 billion. That monthly figure equates to roughly 60% growth compared with the same month a year earlier and about 15% growth relative to September, with the company attributing the strength to ongoing demand for AI chips.
The domestic market backdrop in Taiwan amplified the move. The TAIEX climbed more than 1,000 points intraday for a third straight session, a rally that the market attributed to the sustained impact of short-selling curbs imposed by Taiwan's Financial Supervisory Commission.
Investor sentiment in the AI-related segment was further buoyed by optimistic overnight earnings from CoreWeave, which helped ease market concerns about elevated debt levels within parts of the AI trade and contributed to a broader uptick in AI-focused equities on Wednesday.
Market reaction and context
TSMC’s board-level approvals combine a strategic shift into direct financial participation in AI model companies with the operational confirmation of robust chip demand through the October revenue print. The equity commitments - each capped at $500 million - signal a new element in TSMC’s engagement with major AI players, complementing its manufacturing relationships.
The simultaneous release of a record monthly revenue number provided tangible financial context for the equity moves, showing substantial year-over-year and month-over-month gains tied to AI chip demand.
What to watch next
- How markets price TSMC’s pivot into direct investments in AI model firms relative to its traditional foundry business.
- Follow-through in demand for AI chips and whether monthly revenue trends remain elevated beyond October.
- Broader Taiwan market momentum, which has been influenced by regulatory short-selling curbs and recent earnings in adjacent AI-focused companies.