From Nasdaq: 2024-10-17 11:37:00

Investors favor the technology sector in the US due to services PMI index growth, unlike manufacturing contraction. Semiconductor and chipmaking sectors draw attention, especially Taiwan Semiconductor with major customers. NVIDIA stock faced sell-off concerns, while ASML fell 17% after missing booking guidance.

Taiwan Semiconductor stock surged by 12% on strong earnings and growing demand. Investors anticipated the rally based on revenue growth and premium valuations. With a 39% jump in revenue and 54% net income increase, future valuation targets look promising. CEO hints at rising demand and revenue projections exceeding expectations.

Taiwan Semiconductor management expects a revenue boost to $26.9 billion, gross margins near 57%. Needham & Co reiterated a “Buy” rating, while Susquehanna raised target to $250, anticipating an 18.5% upside. Short interest in Taiwan Semiconductor stock dropped, potentially forcing more short sellers to cover positions.

Bullish momentum for Taiwan Semiconductor stock continues as demand trends favor profitability and margins in the industry. Short sellers might need to cover positions in the face of the stock’s rising momentum and positive outlook.



Read more at Nasdaq:: Taiwan Semiconductor Soars on Earnings With More Room to Run