Taiwan Semiconductor Manufacturing (TSM), the world’s largest contract chipmaker, has been a major winner of the AI boom. The company sits at the center of the global chip supply chain, making advanced processors for Apple (AAPL), Nvidia (NVDA), AMD (AMD), and Qualcomm (QCOM). Also, demand for advanced chips remains strong even as some analysts warn of an “AI bubble.” Importantly, TSM stock is a Strong Buy, according to the technical indicators, implying further upside from current levels.
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Analyzing TSM Stock’s Technical Indicators
According to TipRanks’ easy-to-understand technical analysis tool, Taiwan Semiconductor stock is currently on an upward trend. The stock’s 50-day Exponential Moving Average (EMA) is $325.78, while its price is $364.31, implying a bullish signal.
Another technical indicator, Williams %R, helps traders see if a stock is overbought or oversold. For TSM stock, Williams %R currently shows a Buy signal, suggesting the stock is not overbought and has room to run.
Moreover, the Rate of Change (ROC) is a momentum-based technical indicator. It measures the percentage change in a stock’s price between the current price and the price from a specific number of periods ago. Typically, an ROC above zero confirms an uptrend. TSM currently has an ROC of 10.11%, which signals a Buy.
Is TSM a Buy, Sell, or Hold?
Turning to Wall Street, TSM stock has a Strong Buy consensus rating based on eight Buys and one Hold assigned in the last three months. At $410.14, the average TSM stock price target implies a 12.59% upside potential.
