Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) stock is sliding on Wednesday as chip names digest a mixed tape. The Nasdaq is down 0.06% while the S&P 500 has gained 0.27%. • Taiwan Semiconductor stock is showing positive momentum. What’s the outlook for TSM shares?The contract chipmaker is expanding advanced chip production as AI customers increase demand for higher-performance, lower-power 3nm and 2nm technologies.AI Demand Drives 3nm ExpansionTSMC has raised this year’s capital expenditure plan to $60 billion to $64 billion, with about 70% to 80% of that spending directed toward advanced process technologies.TSMC Adds Capacity Across Key SitesThe company is adding three new 3nm fabrication plants in Taiwan, Arizona and Kumamoto, Japan, while also converting some existing 5nm production lines to support more 3nm capacity.Demand for TSMC’s 2nm process also remains strong, with monthly wafer output expected to approach 100,000 wafers by the end of the year, in line with the company’s production roadmap.Technical AnalysisFrom a trend perspective, TSMC is still in a longer-term uptrend, trading about 15.7% above its 200-day SMA ($358.98) and about 4% above its 100-day SMA ($399.47). The near-term picture is choppier: the stock is about 2.5% below its 50-day SMA ($425.84), and the 20-day SMA ($410.99) remains below the 50-day SMA, a short-term bearish alignment.Earnings & Analyst OutlookLooking further out, the next major catalyst for the stock arrives with the Oct. 15 (estimated) earnings report.