By Doug Busch

Taiwan Semiconductor Manufacturing stock is rising in early trading after the company reported strong earnings and raised fourth-quarter guidance, a move that shouldn't surprise given its critical role supplying chips to leaders like Nvidia, AMD, Broadcom, and Apple.

TSMC has delivered a technical clinic over the past year, notably breaking above a cup base pivot near $225 this summer, retesting it successfully in August, and then surging higher. The price has tracked its 21-day exponential moving average consistently since completing a bullish island reversal with the April 23 gap-up. Round number theory came into play at $300, and with shares now trading above a bull flag pivot in the premarket, a measured move toward $350 into 2026 appears in play. The setup remains constructive as long as it holds above $285.

Taiwan Semiconductor was trading at $308.90 Thursday.

When evaluating a stock's advance, confirmation across multiple time frames adds conviction. For TSMC, the weekly chart for this name reinforces the bullish case. The stock recently cleared a bull flag pivot at $250, in a pattern that started with an impressive 11-of-15 week winning streak between April and July, with the four weekly losses each under 2%. The measured move from this pattern implies a potential target of $365 into the latter half of 2026. While last week's dark cloud cover candle could raise concern, it's worth noting that bearish candlesticks patterns tend to carry less weight in strong uptrends, making the overall trend still favorable.

With a strong semiconductor tailwind this name should appreciate nicely into year end and 2026.

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October 17, 2025 09:59 ET (13:59 GMT)

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