Following gains in Tuesday and Wednesday's trading, Taiwan Semiconductor Manufacturing (TSM 3.76%) stock is moving higher again Thursday trading. The contract semiconductor fabrication leader's share price was up 4.2% as of 2:30 p.m. ET. At the same point in the day, the S&P 500 was up 1.8%, and the Nasdaq Composite was up 2.3%.

TSMC stock is moving higher along with the broader market today in conjunction with ongoing developments that suggest the U.S. and China could soon reach some manner of trade deal. The stock is also getting a boost from exciting new technology the company showcased yesterday.

TSMC climbs in response to trade negotiation hopes

The broader market is continuing to move higher today on hopes that a trade deal between the U.S. and China is on the horizon. Some reports have also suggested that Trump administration employees have made comments suggesting that the principal terms for a trade deal with India are close to completion. On the other hand, Chinese government officials said yesterday that there were currently no trade talks with the U.S. taking place.

TSMC is gearing up to launch its next-gen process technology

At its North America Technology Symposium yesterday, TSMC shared performance details and a launch timeline for its new A14 semiconductor process. The technology is aimed at accelerating advancements for artificial intelligence (AI) and is expected to deliver significant advancements for processing power and energy efficiency.

The company is touting a 15% improvement for processing speed compared to its current N2 process, and energy efficiency and logic density are expected to deliver comparative improvements of 20% and 30%, respectively. Even better, the chip yield from the process is already ahead of schedule. TSMC is already the clear-cut leader in semiconductor foundry services, and the planned launch of A14 in 2028 looks poised to extend its competitive advantages.