Taiwan Semiconductor Stock Surges Amid Technical Analysis and Price Predictions

Taiwan Semiconductor Manufacturing's stock is surging this week, up 14.5% from the previous week's close, driven by the favorable industry backdrop and strong earnings and guidance from Arm Holdings, a leading CPU architecture designer. TSMC's valuation is benefiting from the spillover effects of Arm's performance, with its stock still potentially undervalued based on its price-to-earnings ratio. However, investors should consider geopolitical risks before investing, given the company's central position in U.S.-China tensions and global supply chains.