Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) stock rose more than 1% in Tuesday’s premarket session as investors positioned ahead of the chipmaker’s quarterly earnings report later this week. Nasdaq futures gained 0.49%, while S&P 500 futures slipped 0.03%.
Investors Await Taiwan Semiconductor Earnings
Investor focus has shifted to Taiwan Semiconductor’s July 16 earnings report, which is expected to provide fresh insight into artificial intelligence chip demand and the broader semiconductor market. The stock is also attempting to regain momentum after pulling back from its June high.
Taiwan Semiconductor is expected to report a fifth consecutive quarter of record earnings on Thursday, driven by strong demand for AI chips and advanced packaging technologies, Reuters reported.
According to an LSEG SmartEstimate, second-quarter net profit is forecast to rise 59% year over year to 632.6 billion New Taiwan dollars ($19.65 billion), following the company’s record 36% increase in quarterly revenue earlier this week.
Reuters reported that analysts expect Taiwan Semiconductor to raise its full-year revenue outlook. Investors will also watch for any increase in the company’s 2026 capital spending guidance, with some analysts forecasting it could rise from the current $52 billion-$56 billion range to about $58 billion.
Technical Levels To Watch
Taiwan Semiconductor remains in a long-term uptrend. The stock has gained 84.4% over the past 12 months. It continues to trade well above its 100-day simple moving average of $391.68 and its 200-day simple moving average of $349.02.
However, the shares remain 3.2% below the 20-day simple moving average of $441.14, suggesting recent momentum has cooled. The stock is trading just 0.6% above its 50-day simple moving average of $424.51, making that level an important area for buyers to defend.
The relative strength index stands at 45.93, which signals neutral momentum. That suggests neither buyers nor sellers have gained a clear advantage.
The moving averages continue to support a bullish long-term trend. The 20-day average remains above the 50-day average, while the 50-day average stays above the 200-day average.
Key resistance sits near $450. A move above that level could strengthen bullish momentum. Key support is around $419, close to the intermediate trend area.
Earnings And Analyst Outlook
Taiwan Semiconductor 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 reach $39.76 billion, compared with $30.07 billion in the prior-year quarter.
The stock trades at about 36.6 times earnings, reflecting its premium valuation.
Analysts remain broadly bullish. The consensus rating is Buy, with an average price forecast of $489.17. Recent analyst actions include:
- Bank of America: Buy; raised price forecast to $590 on June 24.
- Susquehanna: Positive; raised price forecast to $575 on June 22.
- Barclays: Overweight; raised price forecast to $470 on April 22.
Benzinga Edge Rankings
Taiwan Semiconductor scores well across most Benzinga Edge metrics.
The stock carries a Momentum score of 90.7, reflecting strong trend performance. Its Quality score of 97.76 highlights strong fundamentals, while its Growth score of 92.41 underscores continued confidence in AI-driven demand.
Its Value score is 24.1, indicating investors are paying a premium for future growth.
Top ETFs Holding Taiwan Semiconductor
Taiwan Semiconductor is a major holding in several exchange-traded funds, including:
- Harbor International Compounders ETF (NYSE:OSEA): 7.10%
- iShares International Dividend Active ETF (NYSE:BIDD): 7.26%
- Pacific NoS Global EM Equity Active ETF (NASDAQ:GEME): 9.98%
Large fund flows into or out of these ETFs can influence demand for Taiwan Semiconductor shares.
Price Action
TSM Stock Price Activity: Taiwan Semiconductor shares were up 1.23% at $426.77 during premarket trading on Tuesday, according to Benzinga Pro data.
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