TAIWAN SEMICONDUCTOR-SP ADR (NYSE:TSM) – A Strong Growth Candidate Meeting Minervini’s Criteria

TAIWAN SEMICONDUCTOR-SP ADR (NYSE:TSM) has been identified by our stock screener as a high-growth momentum stock that also aligns with Mark Minervini’s Trend Template. The company’s strong technical setup and accelerating fundamentals make it a compelling candidate for growth-focused investors.

Why TSM Fits the Minervini Trend Template

The Trend Template focuses on stocks exhibiting strong uptrends, and TSM meets all key criteria:

• Price Above Key Moving Averages:
  • Current price ($240.40) is above the 50-day ($210.42), 150-day ($194.42), and 200-day ($193.68) moving averages.
  • The 50-day MA is above both the 150-day and 200-day MAs, confirming bullish momentum.
• Upward-Trending Moving Averages:
  • The 150-day and 200-day MAs are rising, reinforcing long-term strength.
• Strong Price Performance:
  • TSM is trading 80% above its 52-week low ($133.57) and within 3% of its 52-week high ($248.28).
• High Relative Strength:
  • With a ChartMill Relative Strength (CRS) score of 91.58, TSM outperforms 92% of the market.

Growth Fundamentals Supporting the Case

Beyond technicals, TSM demonstrates strong growth metrics:

• Earnings Growth:
  • EPS grew 39.9% year-over-year (TTM), with recent quarterly growth exceeding 60%.
  • Profit margins remain robust at 42.7% (latest quarter).
• Revenue Expansion:
  • Sales grew 38.6% in the most recent quarter, with full-year revenue up 33.9%.
  • Free cash flow surged 221% over the past year.
• Industry Leadership:
  • As the world’s largest semiconductor foundry, TSM benefits from strong demand in AI, 5G, and high-performance computing.

Technical Outlook

According to ChartMill’s technical report, TSM has a strong rating of 9/10, supported by:

• A positive long-term and short-term trend.
• Trading near 52-week highs with solid volume.
• Multiple support levels between $226 and $233.

While the setup rating is currently 5/10, indicating some volatility, the stock remains well-positioned for growth investors.

For a deeper analysis, review the full technical report on TSM.

Our High Growth Momentum + Trend Template screener lists more stocks meeting these criteria.

Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.