Taiwan Semiconductor Manufacturing Co (TSMC) has received a formal request from Nvidia to increase output of its H200 artificial intelligence accelerators to satisfy substantial orders from mainland Chinese technology firms. According to supply-chain sources, Chinese customers have placed bookings for more than two million H200 units for delivery in calendar 2026, prompting TSMC to add two additional 5-nanometer production lines at its Tainan and Taichung fabs. Engineering teams are targeting a 30% uplift in monthly wafer starts for H200 parts by the end of Q2 2026, with Nvidia co-investing in specialized packaging equipment to expedite throughput.

After retreating from its December record high, TSMC shares have stabilized above the 300-level for six consecutive trading sessions, contributing to a 127% increase from the April 9 year-to-date trough. The company is positioned to close out the year with a cumulative return of approximately 55%, outperforming broader semiconductor benchmarks by nearly 20 percentage points. Investors have credited the resilience to TSMC’s diversified customer base—spanning mobile, high-performance computing and automotive sectors—and to the timing of its advanced process node rollouts, including 3-nanometer capacity ramping ahead of initial volume shipments to key clients such as Apple and AMD.

Options flow data shows a Schaeffer’s put/call open interest ratio (SOIR) for TSMC of 2.22, placing it in the 98th percentile of the past year’s readings and reflecting pronounced bearish positioning among derivatives traders. On the same session, call volume reached 42,000 contracts—double the typical level for this point in the day—versus 33,000 puts, with the weekly January 2 307.50-strike call the most actively traded. Should this skewed pessimism unwind, analysts anticipate an influx of additional bullish momentum, potentially underpinning further multiple expansion ahead of TSMC’s next quarterly results announcement.