- Taiwan Semiconductor (TSM) shares are trading at new all-time highs.
- Shares are up nearly 70% over the past 52 weeks.
- TSM maintains a 100% technical “Buy” opinion from Barchart.
- The stock hit new highs Thursday after Taiwan Semi reported record profit in its fourth-quarter earnings.
Today’s Featured Stock
Valued at $1.7 trillion, Taiwan Semiconductor (TSM), commonly referred to as TSMC, is the largest dedicated integrated circuit foundry in the world. Its customers include the largest chip companies, like Nvidia (NVDA), Apple (AAPL), Advanced Micro Devices (AMD), and Broadcom (AVGO). This makes Taiwan Semi a key player in all things related to artificial intelligence.
Another way to think about it is that Taiwan Semi’s quarterly results are an indicator of demand and growth in AI chips. If Nvidia and its peers keep needing more and more chips, Taiwan Semi’s business should grow. This would in turn help calm fears that AI is a bubble about to burst at any sign of weakening demand.
In the fourth quarter, TSMC reported a record profit of $16.02 billion, up 35% year over year. This beat analyst expectations and assured investors that AI demand remains strong.
Also encouragingly, despite CEO C.C. Wei saying the company remains “nervous” about AI demand remaining, Taiwan Semi set its capital expenditure forecast for the year in a range of $52 billion to $56 billion. That doesn’t sound nervous to me!
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. TSM checks those boxes. Since the Trend Seeker signaled a new “Buy” on Dec. 26, the stock has gained 15.68%.
Barchart Technical Indicators for Taiwan Semi
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
Taiwan Semiconductor scored a new all-time high of $351.20 on Jan. 15.
- TSM has a Weighted Alpha of +84.9.
- Taiwan Semi has a 100% “Buy” opinion from Barchart.
- The stock gained 69.4% over the past 52 weeks.
- TSM has its Trend Seeker “Buy” signal intact.
- The stock recently traded at $349.10 with a 50-day moving average of $298.37.
- Taiwan Semi made 16 new highs and gained 21.75% in the last month.
- Relative Strength Index (RSI) is at 73.65.
- There’s a technical support level around $324.67.
Don’t Forget the Fundamentals
- $1.7 trillion market capitalization.
- 33.97x trailing price-earnings ratio.
- Analysts project earnings to increase by 24% in its fiscal 2026.
Analyst and Investor Sentiment on Taiwan Semi
- The analysts tracked by Barchart rate Taiwan Semiconductor a “Strong Buy” with price targets ranging between $325 and $450.
- Short interest is very low at 0.68% of the float.
The Bottom Line on Taiwan Semiconductor
Given that Taiwan Semiconductor is the leading integrated circuit foundry, its results matter for all AI chip companies. Because Wall Street seems pleased with its Q4 results, there could be sustained momentum in its shares and those of companies like Nvidia and AMD.
However, the AI trade has been volatile over the past 52 weeks. Any renewed concerns about a bubble bursting could create at least a short-term selloff in TSM stock.
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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