Taiwan Semiconductor stock is near a buy point of 175.45 in a cup with handle as the chipmaking giant's shares are approaching an all-time high of 193.47. The company is today's selection for IBD 50 Stocks To Watch.
Taiwan Semiconductor makes chips for artificial intelligence chip leader Nvidia and a number of other tech firms throughout the globe, including Apple, Advanced Micro Devices and Broadcom.
Shares were trading nearly 6% lower Tuesday but remain in the handle formation. IBD MarketSurge chart tools show that Taiwan Semiconductor stock rebounded after second-quarter results on July 18 but sold off before finding support at the 200-day moving average and building out the base.
Both sales and earnings accelerated from the prior quarter. Year over year, sales grew 34% to $20.7 billion while earnings of $1.47 per share was 31% higher and reversed declines in fiscal 2023. For the third quarter, the company guided sales of $22.8 billion at the midpoint.
Analysts polled by FactSet see profits rising 23% in 2024 with earnings of $6.46 per share. In 2025, they expect profits to increase 27% with earnings of $8.23 per share.
Institutional Support For Taiwan Semiconductor Stock
Taiwan Semiconductor stock has been outperforming 95% of stocks in the Investors' Business Daily database, going by its Relative Strength Rating of 95. The EPS Rating is 93 while the Composite Rating stands at 91.
The chip foundry leader holds first place in the electronics and semiconductor manufacturing group.
More funds have been net buyers over the past seven quarters. The JP Morgan Large Cap Growth Fund (SEEGX) and the Harbor Disruptive Innovation Fund (HAMGX) hold shares of Taiwan Semiconductor stock.
Among exchange traded funds, the iShares MSCI Taiwan exchange traded fund holds shares of Taiwan Semiconductor.
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