Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) stock rose nearly 3% on Thursday, outperforming a weaker technology sector as investors continued to favor the stock’s long-term growth story.
Taiwan To Remain Taiwan Semiconductor’s Manufacturing Hub
Separately, Taiwan’s Minister of Economic Affairs Kung Ming-hsin said Thursday that the United States is unlikely to match Taiwan Semiconductor’s production capacity in Taiwan, despite the chipmaker’s ongoing expansion in Arizona, according to Focus Taiwan.
Kung said Taiwan Semiconductor has already announced plans for 16 fabrication plants and advanced CoWoS packaging facilities in Taiwan, ensuring the island remains the company’s primary manufacturing base. “No matter how many fabs the U.S. builds in the future, it won’t be that many,” he said.
His comments came after President Donald Trump said Taiwan was doubling the size of Taiwan Semiconductor’s Arizona chip plants and claimed the U.S. could capture 50% of the global chip market before he leaves office.
Kung also dismissed concerns that Taiwan Semiconductor’s U.S. expansion would weaken Taiwan’s “silicon shield” and said any future overseas fab plans should be confirmed by the company itself. He added that he was confident Taiwan Semiconductor Chairman C.C. Wei would “handle the matter appropriately.”
Taiwan Semiconductor Technical Analysis
TSM remains in a strong long-term uptrend. The stock trades 2.6% above its 20-day simple moving average of $438.55, 7.2% above its 50-day SMA of $419.86 and 30.8% above its 200-day SMA of $344.11.
The moving averages remain in bullish alignment, with the 20-day SMA above the 50-day SMA and the 50-day above the 200-day SMA. That pattern suggests buyers continue stepping in on pullbacks.
The relative strength index stands at 54.99, indicating neutral momentum. The reading suggests the stock has room to advance without entering overbought territory.
A sustained move above the $450 level could support another test of the June high.
Key resistance is at $450, while key support sits near $405.50, close to the rising 50-day moving average.
Earnings And Analyst Outlook
TSM is scheduled to report second-quarter earnings on July 16.
Wall Street expects earnings of $3.77 per share, up from $2.47 a year earlier. Revenue is projected to increase to $39.76 billion from $30.07 billion.
The stock trades at 38.6 times earnings, reflecting a premium valuation.
Analysts maintain a consensus Buy rating with an average price forecast of $489.17. Recent analyst actions include Bank of America raising its price forecast to $590 on June 24, Susquehanna increasing its price forecast to $575 on June 22 and Barclays maintaining an Overweight rating while raising its price forecast to $470 on April 22.
Benzinga Edge Rankings
Benzinga Edge assigns TSM a Momentum score of 91.4, a Quality score of 97.73 and a Growth score of 92.58, while its Value score stands at 21.48.
The scores suggest the stock continues to benefit from strong momentum, high-quality fundamentals and solid growth expectations, although its premium valuation leaves less room for disappointment.
The Funds Most Invested In TSM
TSM is a major holding in several exchange-traded funds, including Harbor International Compounders ETF (NYSE:OSEA), Pacific NoS Global EM Equity Active ETF (NASDAQ:GEME) and Nicholas Crypto Income ETF (NYSE:BLOX).
Large inflows or outflows in those funds can influence demand for TSM shares.
Taiwan Semiconductor Price Action
TSM Stock Price Activity: Taiwan Semiconductor shares were up 2.61% at $455.81 at the time of publication on Thursday, according to Benzinga Pro data.
Photo via Shutterstock
