TSMC Shares Fall After Record Q1 Profit Amid Profit‑Taking

TSMC's recent profit sales may modestly dampen demand expectations for ASML, but the Dutch company's technical indicators still point to an upward trend. Analysts anticipate that ASML's share price will likely hold at current levels or experience a small decline over the next 1–3 days.

Following TSMC’s first‑quarter earnings announcement, the company’s shares fell, registering a 2.4% loss within 24 hours. Technical indicators support this downturn: the price is below both the 20‑ and 50‑day moving averages, the MACD is negative and slightly below its signal line, and the RSI hovers around 45—well outside the over‑sold region but indicating a downward trend. In the next one to three days, the price may test levels near the 20‑day SMA and seek support close to the 50‑day SMA. Consequently, short‑term momentum appears bearish, and risk remains high until a clear recovery signal emerges.

TSMC’s decline following its profit sale may introduce uncertainty into the supply chain and place short‑term pressure on NVDA’s procurement costs. However, NVDA’s technical indicators continue to show an uptrend: the 20‑period simple moving average (SMA20) remains above the 50‑period SMA (SMA50), and the price enjoys strong support at the 202.11 level. While the relative strength index (RSI) sits in the overbought zone at 67.5, the MACD staying below its signal line could signal short‑term weakness. Overall, this news may impose a modest downward pressure on NVDA in the near term, but the prevailing technical strength could mitigate the impact. Accordingly, I assess the outlook as "neutral".