AI Frenzy Seen Powering TSMC’s Rally From Overbought Levels
- Optimism on AI justifies any potential price increase, BI says
- JPMorgan hiked its target price for TSMC by 10% on AI revenue
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The blistering gains of Taiwan Semiconductor Manufacturing Co. have sent the chipmaker to the most overbought level in three years, but its critical role in artificial intelligence suggests investors may find it too early to abandon the rally.
TSMC, whose chips are used by some of the world’s most advanced AI processors, gained further traction this week by rising more than 10% to a fresh record following the advance in its client Nvidia Corp. The rally has brought its 14-day relative strength index to over 82, making it one of the most overbought stocks in Asia based on this technical indicator.