Taiwan Semiconductor Manufacturing Co. Ltd. TSM is expected to release its third-quarter earnings report before the market opens on Oct. 17.

Investors are keenly observing whether the chipmaking leader can deliver results in a mixed semiconductor market. Analysts on Wall Street project that Taiwan Semiconductor will report an earnings per share (EPS) of $1.80 and revenue of $23.1 billion for the quarter. Given the company’s pivotal role in global chip supply, these figures might not reveal the whole picture.

One sign of potential success? Reports indicate that the company has commenced production of Apple Inc‘s AAPL A16 chips at its new facility in Phoenix, Arizona, contributing to the U.S.’s efforts to bring semiconductor manufacturing closer to home.

Although production is still in its initial phases, this transition suggests that Taiwan Semiconductor stands to gain from the Biden administration’s initiatives aimed at increasing domestic chip production. Despite earlier challenges such as construction delays, the Arizona plant is anticipated to become fully functional by mid-2025, with Apple as a key client.

These advancements, along with Taiwan Semiconductor’s status as the biggest contract chipmaker globally, might instill confidence in its long-term growth prospects, especially as demand for chips in AI and other advanced technology sectors continues to rise.

From a technical standpoint, the stock is signaling bullish patterns ahead of the earnings announcement.

Chart created using Benzinga Pro

The stock is currently trading at $187.13, surpassing its eight-day, 20-day, 50-day, and 200-day moving averages, indicating strong upward momentum.

Chart created using Benzinga Pro

Notably, the company’s Moving Average Convergence/Divergence (MACD) is at 4.83, a further endorsement of positive sentiment. The Bollinger Bands also reflect that the stock is trading within the upper bullish band.

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However, the semiconductor market has faced recent pressures following ASML Holding NV‘s ASML lower revenue guidance for 2025, raising concerns that U.S. export restrictions may impact Taiwan Semiconductor’s short-term outlook.

Nevertheless, with its established presence in AI chip production and strategic expansion efforts in the U.S., the company may still exceed expectations.

Will Taiwan Semiconductor’s upcoming third-quarter earnings reaffirm its position as an essential player in the global semiconductor industry?

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