Taiwan Semiconductor Stock Lifts Sector On Sunny Outlook

TSM is trading near 2-year highs

Taiwan Semiconductor Inc (NYSE:TSM) stock is climbing today, picking up its sector peers as well after the Taiwan-based chip firm reported strong fourth-quarter results. The company now sees a 20% or more surge in revenue in 2024 due to demand related to artificial intelligence (AI). 

TSM is floating at its highest levels since February 2022, up 6.8% at $109.98 at last glance, and earlier rose as high as $111.99. Trading above the $105 level, which provided a ceiling for the shares throughout December, the stock is now up 22.8% year over year. 

In the options pits, calls are more than doubling puts so far this morning. At this point, 122,000 calls and 54,000 puts have been exchanged, which is already 2.5 times the average daily volume. The February 120 call is the most active contract by far, where new positions are being opened. 

Analysts have yet to chime in on Taiwan Semiconductor’s latest report, though brokerages are already quite bullish. In fact, six of the seven in coverage sporting a “buy” or better rating on TSM.

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