Taiwan Semiconductor Aiming For A Break Above $500

Taiwan Semiconductor (NYSE: TSM) maintains its bullish cycle from the 2022 low. Bulls continue to seek further upside extension. In today’s article, we examine the current Elliott Wave structure unfolding. Our analysis highlights the potential for higher targets ahead.

TSM shows an impulsive advance from its 2022 low. Wave I peaked at $226, followed by a wave II pullback to $134. Currently, wave III remains in progress and enters its final stage. The internal cycle of this rally also shows a three-wave advance. Wave ((3)) ended at $479. Then, a pullback in wave ((4)) reached $372 in August 2026.

As long as this low holds, the stock should continue rallying in wave ((5)). It will target the $504 – $545 area. That zone will likely see some profit-taking. It could also mark the wave III peak. Following that, another pullback will occur within wave IV. Then, the rally will resume again.

Consequently, TSM’s weekly cycle remains supported to the upside. The bullish sequence suggests further extension. Buyers will keep seeking entries within daily pullbacks. These will form as 3, 7, or 11 swings within the main trend.