TSMC stock extends gains as robust $122.4B revenue signals strong growth

Traders Union
All News
Financial News
TSMC jumps 4.94% on Nvidia partnership

Highlights

TSMC strengthens its AI semiconductor leadership through an expanded partnership with Nvidia, integrating advanced AI and computing technology into manufacturing processes.
TSMC posts robust 2025 performance with $122.4 billion in revenue and $55.2 billion net income, while sharpening focus by divesting Vanguard International Semiconductor shares.
TSMC trades with strong bullish momentum above key support, expected to consolidate between $430.00 and $450.00 over the next week amid overbought signals.

Expanded Nvidia partnership and record results fuel market share outlook

TSMC's announcement of an expanded strategic partnership with Nvidia brings Nvidia's advanced AI and accelerated computing technologies directly into TSMC's core manufacturing processes, aiming to enhance chip design, lithography, and defect inspection. This integration is poised to drive production efficiency and address surging global demand for AI semiconductors, positioning TSMC to capture continued market share in high-value segments. Additional support comes from robust annual results, with 2025 revenue reaching $122.4 billion and net income at $55.2 billion, alongside a sharpened business focus as TSMC reduces its stake in Vanguard International Semiconductor.

Bullish momentum faces overbought risk amid persistent buying

The daily chart shows TSM trading above the SMA-20 at $407.10, SMA-50 at $379.39, and SMA-200 at $321.37, with the Ichimoku Kijun providing support at $403.18. Momentum technicals confirm the bullish tone: MACD and ADX signal ongoing positive momentum, while RSI at 59.62 remains in bullish territory. However, both CCI at 121.65 and BBP at 15.89 signal overbought conditions, and the Stoch RSI also indicates an overbought setup, signaling possible near-term caution. The Awesome Oscillator aligns with the upward move, and the current price action features a strong upward gap near the session high, confirming high volatility and persistent buying after the open.

High probability of further gains as volatility shapes breakout risks

Over the next five trading days, the expected price range is $430.00 to $450.00, reflecting a typical volatility band relative to current levels. The probability of further price gains is high—above 80%—with the base case projecting consolidation above support at $430.00–$440.00. A bullish breakout may be triggered if TSM trades decisively above $450.00, while a clear move below $430.00 could signal the start of a short-term correction.

Viktoras Karapetjanc, expert at Traders Union, sees TSMC's deepened AI partnership with Nvidia as a fundamental driver of continued sector leadership. He believes robust 2025 results and the company’s sharpened operational focus support strong investor sentiment. Short-term technicals add to a positive outlook, but some overbought signals call for tactical awareness. He projects a base case of further consolidation and constructive price action. "TSMC’s synergy with Nvidia in AI production sets the stage for further gains, and I expect persistent upside as long as key support holds."

Earlier, analysts noted that TSMC was exhibiting robust bullish momentum supported by sector leadership and strengthened AI partnerships. The current analysis not only reinforces this view with new evidence of expanded Nvidia collaboration and strong financials, but also identifies a potential breakout above $450.00 as the key level to watch for the next upward move.

Source of Data: TSM Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.