On Tuesday, Taiwan Semiconductor earned a positive adjustment to its Relative Strength (RS) Rating, from 67 to 76. While it's not currently an ideal time to invest, see if the TSM stock is able to form a chart pattern and break out.
As you try to find the best stocks to buy and watch, be sure to pay attention to relative price strength.
IBD's unique RS Rating identifies technical performance by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database.
Over 100 years of market history shows that the best-performing stocks often have an 80 or better RS Rating as they launch their biggest climbs. See if TSM stock can continue to rebound and hit that benchmark.
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Buffett Backs TSM Stock
Despite recent struggles due to geopolitical challenges, billionaire investor Warren Buffett told investors at his annual meeting on May 6 that Taiwan Semiconductor is "one of the best-managed companies and important companies in the world."
The Taipei, Taiwan-based company posted negative growth for both sales and earnings last quarter.
TSM stock earns the No. 6 rank among its peers in the Electronics-Semiconductor Manufacturing industry group. STMicroelectronics and ON Semiconductor are also among the group's highest-rated stocks.
