TSMC Stock Price Forecast: October Revenue Surges Nearly 60%, May Support Stock's Return to $400

TradingKey
Nov 10

TradingKey - As of Monday's close (November 9) Eastern Time, TSMC (TSM) ADR rose 3.51% to $388.62, reaching an intraday high of $394.39 on a trading volume of approximately 15.65 million shares, and edged up further to around $393 in after-hours trading. Previously, TSM plunged 10.78% in a single day on November 5, touching a low of $351.19, before rebounding for two consecutive trading sessions, now having recovered more than 10% from its recent low.

From a fundamental perspective, TSMC released its latest monthly revenue report on November 10, showing consolidated revenue of approximately NT$586.89 billion for October, up 14.7% month-over-month and surging 59.7% year-over-year. Cumulative revenue from January through October reached NT$4.486 trillion, representing a year-over-year increase of 43.3%. This growth rate was notably higher than the company's overall revenue growth pace year-to-date, indicating that demand for advanced manufacturing processes and AI-related chips continues to provide strong support for revenue.

Previously, TSMC had posted record profits for a sixth consecutive quarter in the third quarter, while maintaining a relatively prudent outlook for 2027. Therefore, beyond monthly revenue growth, investors still need to keep a close eye on AI demand, advanced process capacity, and changes in capital expenditures.

TSM daily stock chart, Source: TradingView

Looking at TSM's daily stock chart, following a continuous correction since late October, the stock fell to a low of $351.19 on November 5, near the Fibonacci 0.382 retracement level, which provided some support. It subsequently rose 6.33% on November 6 and gained another 3.51% to $388.62 on November 9. Following two consecutive sessions of rebound, the short-term price structure has shown clear signs of repair, and the stock may extend its rebound in the near term, with the primary target testing the $400-$410 resistance zone.

At present, although the stock has rebounded for two trading sessions, it remains capped by the 10-day and 20-day moving averages. Therefore, the current move is still a rebound phase following the prior sharp pullback, and the medium-term trend has not yet fully recovered.

On the upside, the primary overhead resistance to watch is $400-$410. Only when the stock breaks out decisively and holds above $410 will greater upside potential open up, paving the way for a further test of the resistance near $440. If that level is breached, the stock will once again challenge the $500 mark.

On the downside, the primary support level to watch is $380. If this level fails to hold, the stock will test the $368-$370 range. Continued declines could see the stock fall further toward the key support near $350.

Find out more

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10