Taiwan Semiconductor Production Co. TSM simply provided a quarter that Wall Street will not quickly forget– however you would not understand it by taking a look at the stock chart.
The chip huge crushed very first quarter quotes, powered by AI-hungry need for its 3nm and 5nm chips, yet shares continue to short-circuit.
Strong Basics, Stronger Headwinds
Very first quarter income rose 41.6% year-over-year to $25.53 billion, topping expectations of $23.92 billion. EPS can be found in at $2.12, well above the $1.82 agreement. TSM likewise forecasted 2nd quarter income in between $28.4 billion and $29.2 billion, reinforced by ongoing strength in AI processor need– believe Nvidia Corp‘s NVDA GPUs and Apple Inc‘s AAPL iPhones.
As Direxion’s Head of Capital Markets Jake Behan put it: “TSM’s strong outcomes, driven by its crucial provider function to Nvidia, signal strength ahead of an essential semiconductor incomes season … TSM’s strong incomes and continual capex prepares position it as a bellwether, signaling continued AI-driven need– a bullish signal for the sector.”
However do not hint the triumph music right now.
Check Out Likewise: Nvidia, Meta And 3 More Stocks Are This Strategist’s Leading Buys: Here’s Why
TSM Stock Chart Is Flashing All Red Lights, A Death Cross
Chart produced utilizing Benzinga Pro
In spite of the outstanding report, TSM stock is flashing technical indication all over the board. At $151.74, it’s trading listed below its 8, 20, 50 and 200-day basic moving averages (SMAs). In trader speak, that’s a bearish signal originating from every significant pattern line. The 50-day SMA stands at $177.31, and the 200-day SMA is method up at $183.96– have actually just recently made a Death Cross
” A pre-tariff purchasing rush might have padded TSM’s bump in sales, which raises the concern of whether short-term strength might mask longer-term softness,” cautioned Behan.
Volatility, Thy Call Is Semis
With trade war chatter and tariff jitters looming big, even the very best incomes may not suffice to keep the rally going. As Behan notes: “Heading threat continues to be an essential headwind for the semiconductor sector.”
For financiers aiming to play the volatility, financiers might take a look at the Direxion Daily TSM Bull 2X Shares TSMX (2x everyday return) and the Direxion Daily TSM Bear 1X Shares TSMZ (-1 x everyday return) to ride the waves– or guard from them.
TSM’s basics are bending, however the charts are shivering. AI need is hot, however trade threats and technical pressure might leave the stock stuck in the cooling chamber.
Read Next:
Image: Shutterstock/Jack Hong
Market News and Data gave you by Benzinga APIs