Watch These TSMC Price Levels as the Chipmaker's Earnings Report Looms

Earnings and Market Performance - TSMC shares are expected to remain in focus ahead of the Q4 earnings report, with AI-driven demand anticipated to boost results [1][10] - Analysts predict a quarterly profit of $11.4 billion, driven by strong demand for advanced silicon used in AI infrastructure [4] - TSMC reported a 34% increase in 2024 sales, setting high investor expectations [4] - The stock gained 80% in 2024 and traded 5% higher year-to-date through Friday's close, but fell 3.5% on Monday amid a broader chip stock decline [5] Technical Analysis and Price Levels - TSMC's stock broke out from an 11-week ascending triangle earlier this month but has since retraced to retest the pattern's top trendline [2][10] - The Relative Strength Index (RSI) remains above 50, indicating bullish momentum [2] - A bullish price target of$ 246 is projected using the measured move technique, representing an 18% increase from Friday's close [8] - Key support levels to monitor include $190 and$ 175, with potential buying interest near these levels [9][10][11] Industry and Company Outlook - TSMC's outlook and capital expenditure (CapEx) will be closely watched as the company invests billions in new factories amid potential export curbs and tariffs under the incoming Trump administration [5]