- US listed TSMC shares ↑ almost 80% YTD
- Less than 4% away from all-time high created in July
- Forward guidance for Q4 in focus
- FXTM’s TWN index could see fresh volatility
- Technical levels for TSMC – $192.65, $183.00 and $177.00
Another slew of key data releases and corporate earnings could rock markets in the week ahead:
Saturday, 12th October
- CN50: China’s Ministry of Finance holds briefing
Sunday, 13th October
Monday, 14th October
- CN50: China trade
- US500: Fed Governor Christopher Waller speech
Tuesday, 15th October
- CAD: Canada CPI, existing home sales
- EU50: Eurozone industrial production, Germany ZEW survey
- JP225: Japan industrial production
- UK100: UK jobless claims, unemployment
- US500: Goldman Sachs, Bank of America, Citigroup earnings
Wednesday, 16th October
- NZD: New Zealand CPI
- ZAR: South Africa retail sales
- UK100: UK CPI
- NETH25: ASML earnings
- US500: Morgan Stanley earnings
Thursday, 17th October
- AU200: Australia unemployment
- EU50: Eurozone CPI, ECB rate decision
- JP225: Japan tertiary index, trade
- SG20: Singapore trade
- NAS100: US retail sales, jobless claims, industrial production, Netflix earnings
- TWN: Taiwan Semiconductor Manufacturing Company (TSMC) earnings
Friday, 18th October
- CN50: China GDP, retail sales, industrial production, home prices
- JP225: Japan CPI
- UK100: UK retail sales
The spotlight shines on the world’s largest contract chipmaker with a market cap of almost $1 trillion.
US-listed shares of Taiwan Semiconductor Manufacturing Company (TSMC) are up almost 80% year-to-date, logging only one negative month in 2024.
Note: TSMC shares can be traded on the Taiwan Stock Exchange (TWSE) and New York Stock Exchange (NYSE).
Back in July, TSMC shares hit an all-time high at $192.65 after strong Q2 revenues – giving the company a trillion-dollar valuation momentarily before stocks later tumbled.
Still, prices have rebounded since August with a recent report revealing that TSMC’s September sales jumped 39.6% year-on-year.
This welcome development along with a positive earnings release could push the company’s stock higher.
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When will earnings be published?
TSMC reports its third-quarter earnings on Thursday 17th October before US markets open.
The chipmaker is expected to post earnings of $1.78 per share with Q3 revenues seen rising to $23.28 billion from $17.28 in the prior year.
Back in July, TSMC forecasted third quarter revenue in a range of between $22.4 billion to $23.2 billion.
But the chipmaker has already beaten these forecasts with consolidated sales in Q3 (July – September) hitting $23.6 billion, thanks to AI demand from major clients like Nvidia and Apple.
So much focus will be on the company’s earnings and forward guidance for Q4 which could serve as a key gauge for AI demand.
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What does this mean for FXTM’s TWN index.
FXTM’s TWN index tracks the underlying FTSE Taiwan RIC Capped Index.
And TSMC makes up just under 20% of the index weighting, meaning that the upcoming earnings could result in heightened volatility.
The index is up almost 3% this month, bringing year-to-date gains to roughly 22%. Prices have been trending higher in recent weeks with the all-time high 7% away at 2046.8.
Key levels of interest can be found at 1930 and 1825.
TSMC shares are trending higher on the weekly charts with prices trading above the 21, 50 and 100-week SMA. However, the Relative Strength Index (RSI) is near 70 – signaling that prices may be overbought.
On the daily charts, the trend is bullish with prices are trading less than 4% away from its all-time high created in July at $192.65.
- A decline below $183.00 may see prices test the 21-day SMA at $177.0 and $170.0.
- Should $183.0 prove to be reliable support, this may open a path back to the all-time high at $192.65 and beyond.
