Tech optimism continues to outweigh trade fears and the lack of economic news releases, strengthening the bullish momentum in US equity markets, driving the indices into new highs.
The AI story has been central for the Nasdaq 100 this year and the fact that companies, directly involved in development and expansion of this emergent technological industry, continue to outperform analysts estimates, fuels the rally further.
Yesterday, the Dutch chip equipment manufacturer, ASML added a positive jolt for tech and the latest boost came from TSMC which reported its third-quarter earnings data earlier on today.
The Taiwanese semiconductor giant broadcasted that the surge was driven by high demand for semiconductors used in artificial intelligence and 5G technology. More specifically, TSMC reported a 30% increase in its annual revenue stream, out of which almost half of the sales being from high performance computing segments that are directly related to AI, indicating the insatiable demand surrounding this new technological frontier.
Analysts expect TSMC to safeguard its leadership in the semiconductor foundry space, as its advanced technology nodes and high entry barriers, position the chip behemoth ahead of its competitors. It also underscores TSMC’s central role in the booming AI chip market and its ability to capitalize on technology trends with cutting-edge chip production for clients like Nvidia and Apple.
Technical Analysis
TSM Chart – TSMC reaches a fresh record high in the premarket hours after strong Q3 earnings results
Resistance: 320 (R1), 330 (R2), 340 (R3)
Support: 308 (S1), 293 (S2), 280 (S3)