TSMC's blockbuster results will be a welcome surprise to investors after ASML's earnings sent semiconductor stocks tumbling earlier this week.

AI chip demand is still strong despite a widespread sell-off in chip stocks Tuesday, Wall Street analysts say.

At $730 per share, ASML stock looks reasonably valued at 27 times forward earnings. However, it could remain under pressure until it overcomes its near-term headwinds and its bookings growth accelerates again. So if you already own ASML stock, it's smarter to simply hold it and ride out the cyclical downturn instead of selling it.

ASML breached its year-to-date breakeven level yesterday, and is now heading for its lowest close since January. Since a July 11 all-time high of $1,108.05, the stock has taken a 37.2% haircut, aided by post-earnings bear gaps of 7.

Investors are always looking for stocks that are poised to beat at earnings season and ASML Holding N.V. ASML may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.