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This semiconductor stock is gearing up for a huge surge

This semiconductor stock is gearing up for a huge surge
Elmaz Sabovic

With the previous year marking a breakout period for the semiconductor industry and their respective stocks, with some companies like Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) multiplying their value, it is no wonder that this effect carried into this year as well.

Taiwan Semiconductor Manufacturing Company (NYSE: TSM) might be the next one in line, as its graphic chart tells a story of a possible breakout in its trend lines, as per a post on X from stock reporter TrendSpider on January 18.

$TSM Another semiconductor name that looks just about ready to bust a move.”

TSMC possible breakout. Source: TrendSpider
TSMC possible breakout. Source: TrendSpider

And as the company just released its fourth-quarter report, it seems this stock just got the catalyst it needs for further surge.

Better than expected revenue and net income

In the just-released fourth-quarter report, TSMC reported revenue for the specified period amounted to $19.62 billion, surpassing the anticipated figure of $19.58 billion. The net income for the same period also stood at $75.61 billion, exceeding the expected net income of $71.34 billion. 

TSMC disclosed that its revenue experienced a 1.5% decrease from the corresponding period in the previous year, amounting to $19.81 billion, and its net income witnessed a decline of 19.3%, reaching $75.61 billion. 

These results compare to TSMC’s guidance for fourth-quarter revenue, which was $18.8 billion to $19.6 billion. The company’s financial performance in the reported period aligns with the provided guidance, reflecting the anticipated revenue figures for the fourth quarter.

TSMC’s major clients include prominent companies such as Apple (NASDAQ: AAPL) and Nvidia. The company manufactures the cutting-edge processors featured in Apple’s iPhones.

TSM stock price analysis

At the time of press, this stock was trading at $102.95, posting an increase of 1.26% since the market’s last closure and a gain of 0.42% in the previous five trading sessions. 

TSMC 24-hour stock price chart. Source: Google Finance
TSMC 24-hour stock price chart. Source: Google Finance

As for the technical indicators, they agree with the ‘buy’ verdict at 15. With moving averages leading with a ‘strong buy’ at 14. Oscillators remain neutral at 9.

Technical analysis of TSM stock. Source: TradingView
Technical analysis of TSM stock. Source: TradingView

Only time can tell whether TSMC will be carried with the broader semiconductor industry due to its connection to industry giants or will fail to meet its supply demands.

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