Taiwan Semiconductor (TSM) is soaring to new all-time highs after smashing earnings estimates with shares up about 6% at all-time highs near $345, pulling the rest of the computer chip sector up along with it as names like Lam Research (LRCX), Applied Materials (AMAT), and KLA Corp. (KLAC) are at the top of the S&P 500 in early trading.

TSM posted EPS of $3.14 against estimates of $2.82 and revenue of $33.73B versus projections of $32.27B, handily beating on the top and bottom line and delivering upbeat guidance for revenue and capex spending as insatiable demand for computer chips remains the major theme of the current market environment. TSM projected about 30% revenue growth for 2026, and for capex between $52B and $56B.

Rather than designing chips itself, TSM is a chip foundry; a factory for manufacturing the advanced chips that other companies like Nvidia (NVDA), Apple (AAPL), and many others need, making it a crucial part of not only the complex ecosystem needed to sustain the artificial intelligence boom but also modern life as we know it. TSM’s role as one of the few suppliers on the planet for advanced computer chips means investors are likely to be paying special attention to Taiwan Semi’s capex spending and efforts to increase capacity, which include a massive multi-billion dollar manufacturing facility near Phoenix, Arizona.

A technical look at TSM’s chart shows price surging into new highs, making projecting potential resistance areas difficult. The yearly +1 Standard Deviation Channel comes in near 360, which is the upper edge of the potential expected move area projected by the options market for tomorrow’s Jan. 16 monthly expiration. The Feb. 20 expiration projects about a +/- 9.7% potential move, which would put price near 282 to the upside and 315 to the downside, lining up with a prior ceiling from a period of rangebound trading and offering a notable supportive area.

Tune in live from 8 a.m. to 5 p.m. ET, or anytime, anywhere, on‑demand.

Or stream it via thinkorswim® and thinkorswim Mobile, available through our broker-dealer affiliate, Charles Schwab & Co., Inc

Please do not reply to this email. Replies are not delivered to Schwab Network. For inquiries or comments, please email [email protected].

See how your information is protected with our privacy statement.  

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any decisions.

Schwab Network is brought to you by Charles Schwab Media Productions Company (“CSMPC”). CSMPC is a subsidiary of The Charles Schwab Corporation and is not a financial advisor, registered investment advisor, broker-dealer, or futures commission merchant.

Charles Schwab Media Productions Company and all third parties mentioned are separate and unaffiliated, and are not responsible for one another's policies, services or opinions.

Data contained herein is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. All events and times listed are subject to change without notice.