TAIWAN SEMICONDUCTOR-SP ADR (NYSE:TSM) – A High Growth Momentum Stock with Strong Technical Setup

TAIWAN SEMICONDUCTOR-SP ADR (NYSE:TSM) stands out as a high-growth momentum stock with a favorable technical setup. The company’s strong earnings momentum, combined with a solid technical foundation, makes it an interesting candidate for investors looking for growth opportunities.

Growth Momentum Highlights

• Strong Earnings Growth: TSM posted a 52.7% year-over-year EPS growth (TTM) and a 60.2% increase in the most recent quarter. This acceleration in profitability reflects strong demand for semiconductor solutions.
• Revenue Expansion: Sales grew by 41.6% in the latest quarter, with consistent upward momentum over the past year (39.9% TTM revenue growth).
• Profit Margins: The company maintains robust profitability, with a quarterly profit margin of 43.1%, showing stability compared to previous quarters.
• Positive Revisions & Surprises: Analysts have largely maintained optimistic outlooks, with TSM beating EPS estimates in three of the last four quarters.

Technical Strength & Setup

• Technical Rating (8/10): TSM’s price action remains strong, outperforming 78% of the market over the past year and 87% of its semiconductor peers.
• Setup Quality (7/10): The stock is consolidating after a recent uptrend, presenting a potential entry point. Support sits near $193.44, offering a clear stop-loss level.
• Bull Flag Pattern: The current pullback could be an opportunity for a continuation of the upward trend.
• Low Volume Pullback: Reduced trading volume during the consolidation suggests a lack of heavy selling pressure.

For a deeper technical breakdown, review the full technical analysis report.

Our High Growth Momentum Breakout Setups Screen lists more stocks with similar characteristics and is updated daily.

Disclaimer

This is not investment advice. The observations are based on current data, but investors should conduct their own research before making decisions.