This Semiconductor Giant Keeps Climbing

There’s a market story unfolding that’s hard to ignore — a leading player in the semiconductor space is not just climbing, it’s dominating with a breakout that’s visibly carving higher highs and higher lows on the chart. Against a backdrop of broader tech hesitation, this powerhouse in chip fabrication has delivered a fresh string of all-time highs, propelled by blockbuster earnings, raised investment plans, and ravenous demand for advanced chips powering everything from AI to data centers. Investors are keyed in because this company isn’t merely riding a trend — it’s at the heart of the global technology supply chain, expanding capacity and guiding expectations higher as future growth engines continue to fire on all cylinders. Momentum here is unmistakable, and the technical strength suggests this uptrend still has room to run.

That powerful trend brings us to today’s focus: Taiwan Semiconductor (TSM), a name that has quietly become one of the market’s most reliable engines of upside in recent months. What vaulted TSM onto our radar is a decisive PowerTrend “Buy” signal, with the stock’s one-month price firmly above its 10-month moving average — a condition that historically aligns with durable, trend-driven advances rather than fleeting pops. When a stock already pressing to new highs locks in a long-term trend signal like this, it often marks the point where strength stops being a short-term story and starts looking like a sustained move.

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Given how far and how fast the stock has already traveled, this is a setup where I’d rather express a bullish view with a slightly in-the-money call debit spread than chase outright upside — it keeps me aligned with the trend while building in a margin of safety if the rally pauses to catch its breath. Options on this name are still carrying elevated time premium, and that richness can be turned into an advantage by selling it against a long call, creating a structure that benefits even if the stock goes sideways or pulls back modestly. At current pricing, one such spread offers roughly a 53.8% profit potential even if shares are flat or down as much as 7.5% by expiration, a reminder that smart trade construction can stack the odds in your favor without needing the stock to sprint higher.

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Wishing You the Best in Investing Success,