TLDR
- TSM stock hit an all-time high of $264.58 as it heads for a seven-day winning streak on breakout momentum from a flat base pattern
- August sales surged 34% year-over-year, driving the stock above its 5% buy zone entry point of $248.28
- Company is launching its first multifunctional service center in Pingtung County by mid-2027 to strengthen Taiwan’s chip facility ecosystem
- Q2 results showed earnings jumped 79% to $2.63 per share with revenue climbing 54% to $32 billion, marking second straight quarter of growth acceleration
- Shares are up over 31% year-to-date, outpacing the NASDAQ’s 14% gains as AI demand continues driving chip orders
Taiwan Semiconductor stock is turning heads this week with a stunning rally that pushed shares to fresh all-time highs. The chipmaker’s August sales numbers tell the story of a company firing on all cylinders in the AI boom.
TSM reported 34% year-over-year growth in August sales on Wednesday. The numbers sent shares gapping higher and extended what’s now become a seven-day winning streak. The stock broke out of an early-stage flat base pattern on Tuesday and hasn’t looked back since.
Trading action has been impressive. Shares hit $264.58 this week, marking a new all-time high. The stock is currently hovering just above its buy zone that extends up to $260.70 from the entry point at $248.28.
The company’s second-quarter results from July showed the momentum building. Earnings surged 79% to $2.63 per share. Revenue jumped 54% to $32 billion. This marked the second straight quarter where growth actually picked up speed.
Looking ahead, analysts expect earnings of $2.60 per share for the current quarter. That would represent 33% growth. Revenue is forecast to climb 35% to $32 billion, though this sits slightly below TSM’s own guidance of $32.4 billion at the midpoint.
Expanding Beyond Manufacturing
TSM isn’t just content riding the current wave. The company announced plans for its first multifunctional service center in Pingtung County. The facility will open by mid-2027 and represents a strategic shift.
The new “ecosystem park” will help local facility construction partners upgrade their capabilities. The goal is helping these partners win contracts from other global chipmakers like Intel, Micron, and Infineon. TSM began evaluating this project two to three years ago when it started expanding manufacturing capacity in the U.S. and Japan.
The center will include testing labs where partners can validate products against international standards. TSM plans to encourage partners to send teams to the site. The facility will be part of a larger semiconductor industry supply chain zone.
Technical Picture Looks Strong
From a technical standpoint, TSM is checking all the boxes. The stock has a perfect Composite Rating of 99 on IBD’s scale. Its Earnings Per Share Rating sits at 98, nearly ideal. The Relative Strength Rating, which compares performance against other stocks over 52 weeks, comes in at 89.
Institutional interest remains strong. Mutual funds have been net buyers over the past 13 weeks, giving the stock an Accumulation/Distribution Rating of B-. More funds have added positions in each of the past six quarters.
Infrastructure Challenges Drive Innovation
Arthur Chuang, TSM’s vice president for facility construction, highlighted the reasoning behind the Pingtung project. Taiwan’s limited land and infrastructure resources require proactive measures. The company wants to avoid what he called a “hard landing” for the nation’s industry.
The center will be located in Pingtung Science Park in Pingtung City. Operations are set to begin in the second quarter of 2027 once public utilities at the site are completed. This marks Taiwan’s first cluster dedicated to high-tech facility construction companies.
The AI Connection Continues
TSM’s partnership network includes Nvidia and Apple, two companies at the center of the AI revolution. The company manufactures advanced chips for artificial intelligence applications. This positioning has been a key driver of the stock’s 31% year-to-date gain.
TSM stock closed Friday’s premarket session trading 0.42% higher at $259.99.
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