Calling the guidance issued recently by giant chip manufacturer Taiwan Semi (TSM) "pretty strong," Schwab Senior Equities Contributor and Senior Trading Strategist Alex Coffey said that TSM's results and outlook reduced investors' concerns.

He added that TSM reported "really strong" fourth-quarter results.

Coffey Assesses TSM's Status

Heading into today, TSM stock had lost a third of its value versus its high, so expectations for the chip manufacturer had tumbled a great deal, Coffey stated.

But the tech giant was able to provide as much certainty as possible during these volatile times, the Schwab Network contributor believes.

Additionally, the firm is "very likely to be part of whatever happens" within the chip sector, both in America and overseas, the contributor noted.

More About TSM

In the wake of the company's results and guidance, investment bank Bernstein kept a $251 price target and an Outperform rating on the name. TSM should benefit from strong demand for its advanced packaging, according to Bernstein.

In the last month, TSM has dropped 13%, while it has slumped 28% in the last three months.

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Disclosure: None. This article is originally published at Insider Monkey.