Taiwan Semiconductor (TSM) Shares Rise by Nearly 10%

Taiwan Semiconductor Manufacturing Company Limited (TSM) posted quarterly results that exceeded analyst expectations, driven by strong demand for AI-related chips:

→ Earnings per share: Actual = $1.95, Expected = $1.79;
→ Revenue: Actual = $23.6 billion, Expected = $23.3 billion.

According to the Wall Street Journal:

→ The company expects its revenue from servers and AI processors to triple this year, representing about 15% of its total revenue.
→ TSMC forecasts Q4 revenue between $26.1 billion and $26.9 billion.
→ Citi analysts believe TSMC's gross profit could continue growing next year.
→ Morningstar analyst Felix Lee noted that TSMC is well-positioned against competitors like Samsung and Intel.

TSMC shares surged following the report. Today's stock chart shows: → A 10% increase, reaching an all-time high;
→ The stock surpassed the psychological $200 level;
→ Year-to-date price growth is around 100%.

Technical analysis of the TSM stock chart indicates:

→ The price has been rising within an ascending channel since 2024 (marked in blue), with yesterday’s move pushing it into the upper half of the channel, surpassing the median resistance.
→ On strong news, a bullish gap formed between $190-$200, potentially acting as support.
→ The RSI indicator entered overbought territory, with a long upper wick on the candle suggesting a possible correction.

Optimistic forecasts could sustain long-term bullish sentiment, although short-term corrections may occur from the overbought zone towards support levels like the channel's median or the bullish gap area.

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