Here's How Much TSMC Stock Is Expected to Move After Earnings

TSMC’s U.S.-listed shares are up nearly 40% so far this year.

Taiwan Semiconductor Manufacturing Co. is scheduled to report its latest quarterly earnings early Thursday morning, with traders anticipating a big swing from the stock.

TSMC’s ( TSM ) U.S.-listed shares are expected to swing up to about 5% in either direction by the end of the week. A move of that size from Monday’s close could see the company’s U.S.-listed shares climb as high as $444, approaching last month’s record high above $477, or slip below $400, giving back some of their recent gains.

A solid report from TSMC would be an encouraging signal for earnings from other semiconductor firms, and could help improve sentiment around the AI trade. Shares of the world’s largest contract chip manufacturer are up nearly 40% since the start of the year, as investors piled into the biggest hardware names benefitting from the AI boom. However, the tech rally has stumbled recently amid renewed worries about an AI bubble and concerns about the sustainability of spending by big tech companies, though Wall Street analysts have largely remained bullish on the sector.

TSMC remains a favorite on Wall Street, with all seven analysts tracked by Visible Alpha recommending buying the stock, and most seeing gains ahead.

TSMC reports revenue on a monthly basis, and on Monday said it earned 442.68 billion New Taiwan dollars ($13.79 billion) in June. That brings its second-quarter total to 1.27 trillion New Taiwan dollars, u...