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Taiwan Semiconductor Soars On Earnings With More Room To Run

Many investors still hold high regard for the technology sector in the United States today, which makes sense as the services PMI index is carrying most—if not all—of the economic growth left in the country, compared to the 23-month contraction in the manufacturing sector, as seen in that PMI index. However, not all technology sectors are equal.

The semiconductor and chipmaking niche of the sector receives special attention, which has been present all of 2024 and extrapolated since the shortages seen since the COVID-19 pandemic. In recent quarters, all the pressure seems to have been placed on shares of Taiwan Semiconductor Manufacturing Co. (NYSE: TSM), the global leader in chip sales with major customers all over the sector.

However, investors might have been concerned after seeing NVIDIA Co. (NASDAQ: NVIDIA) sell-off after its last quarter, which announced a state of "lots and lots of supply," according to its CEO, which would ultimately hurt margins and earnings per share (EPS). More recently, ASML Holding (NASDAQ: ASML) stock sold off by over 17% in a single day after missing booking guidance.

Taiwan Semiconductor Stock Soars 12%: Strong Earnings and Growing Demand Fuel Rally

To ease some of the ASML and NVIDIA concerns, Taiwan Semiconductor stock rallied by over 12% in a single day following the blowout earnings results ...