Semiconductor Stock Rallying on $1B Investment Plan

Taiwan Semiconductor Manufacturing Co (NYSE:TSM) is up 2.9% to trade at $407.77, after the chipmaker's board approved investments of up to $500 million in both Anthropic and OpenAI. The company plans to purchase Anthropic common shares at its initial public offering (IPO) price and OpenAI preferred stock. TSM also announced an increase to its quarterly dividend.

The semiconductor pacing for a fourth-straight win, extending its rebound from last week's pullback to $391, a level not seen since March. Year to date the shares have gained 34.8%. 

Options traders have been more bullish than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day call/put volume ratio ranks in the 87th percentile of its annual range. 

TSM tends to underperform options traders' volatility expectations. This is per its Schaeffer's Volatility Scorecard (SVS) of 8 out of 100, could hint at the chip stock being a premium-selling candidate.