Just a few days ago, we said, “After gapping to a low of $133.86, Taiwan Semiconductor (TSM) is oversold on RSI, MACD and Williams’ %R and could bounce higher. Helping, Morgan Stanley just named TSM a top pick and reiterated its overweight rating on the stock.”
At the time, TSM traded at around $150. Yesterday, it closed at $164.55 and is up to $168.30 in pre-market today. All on news TSM sales jumped 45% in July on strong AI chip demand.
“TSMC offered an upbeat assessment of its business and prospects when it last reported earnings, with Chief Executive Officer C.C. Wei signaling the company may have room to raise prices as more of its customers transition to its most advanced technology and have to compete for limited capacity. High-performance computing, led by AI, contributed 52% of TSMC’s revenue last quarter,” added Bloomberg.