Institutional investors, including AllianceBernstein, have also increased their stakes in TSMC, further bolstering positive sentiment around the stock.

Cathie Wood's Ark Invest is making significant investments in Taiwan Semiconductor Manufacturing Company (TSMC), driven by a surge in demand for artificial intelligence (AI).

The company has outperformed the broader market with a 25.25% year-over-year gain, compared to the S&P 500's 12.99%, underscoring its strong position in manufacturing for key clients.

Ark Invest's acquisition of TSMC shares could attract institutional interest in tech-heavy portfolios, potentially redirecting capital flows into crypto assets as risk appetite increases.

As AI technology consumes unprecedented amounts of energy, it is straining global power grids and contributing to rising electricity prices.

Analysts have observed a decline in short interest for TSMC's stock, with 15.5% of short positions decreasing over the past month, indicating a bullish outlook.

Overall, ARK Invest has invested around $34.5 million in TSMC stock at approximately $174 per share, reflecting renewed confidence in the semiconductor sector.

Cathie Wood is prioritizing investments in companies that build AI infrastructure, including robotics and automation, as she believes AI will transform various industries.

On May 21, 2025, Ark Innovation ETF acquired 27,099 shares of TSMC, while Ark Next Generation Internet ETF purchased 16,172 shares, totaling an investment of approximately $8.4 million.

Trading volume for Bitcoin increased by 12% to $1.2 billion in 24 hours, indicating heightened activity that may be influenced by news from the tech sector.

TSMC's stock forecast suggests potential recovery in new orders and bookings, which could lead to improved financial results in the upcoming quarters.

The Nasdaq 100 index recently gained 1.5%, reinforcing a risk-on environment that typically benefits cryptocurrencies.