Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) is set to report its third-quarter earnings before market hours on Oct. 17.

Investors are eagerly watching to see if the chipmaking titan can deliver amid a mixed semiconductor landscape. Wall Street analysts expect the company to report an earnings per share (EPS) of $1.80 and revenue of $23.1 billion for the quarter. However, given the company’s critical role in global chip production, the numbers may tell only part of the story.

Apple's Arizona Move Sparks New U.S. Semiconductor Hope

One bullish indicator? The company reportedly started producing Apple Inc's (NASDAQ:AAPL) A16 chips at its Phoenix, Arizona, plant — part of U.S.'s push to re-shore semiconductor manufacturing.

While production is still in its early stages, the shift signals that the company may benefit from the Biden administration's efforts to bolster domestic chip output. Despite initial setbacks such as construction delays, Taiwan Semiconductor’s Arizona facility is expected to be fully operational by mid-2025, and Apple remains its key customer.

This development, along with Taiwan Semiconductor’s dominant position as the world’s largest contract chipmaker, could fuel optimism for long-term growth — especially as chip demand from AI and advanced tech sectors continues to rise.

TSM Stock Chart Indicates Optimism, But Macro Headwinds Loom

From a technical analysis perspective, the company is flashing multiple bullish signals ahead of its earnings.

Chart created using Benzinga Pro

The stock is trading at $187.13, above its eight-day, 20-day, 50-day and 200-day moving averages, suggesting continued upward momentum.

Chart created using Benzinga Pro

The company’s Moving Average Convergence/Divergence (MACD) indicator stands at 4.83, further pointing to bullish sentiment. Even the Bollinger Bands have the stock trading in the upper bullish band.

Read Also: ASML Earnings Leak Sparks Broad Semiconductor Sell-Off, Sector Down Sharply As Dutch Chipmaker Lowers 2025 Outlook

However, chip stocks have recently come under pressure following ASML Holding NV's (NASDAQ:ASML) softer 2025 revenue guidance, and there are concerns that U.S. chip export restrictions could cloud Taiwan Semiconductor’s near-term outlook.

Yet, with a strong foothold in AI chip production and a strategic U.S. expansion, the company may still outperform expectations.

Will Taiwan Semiconductor’s third-quarter earnings solidify its position as a key player in the global semiconductor race?

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