Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) is among the most fantastic stocks every investor should pay attention to. The company’s shares have gained nearly 48% year-to-date, and it remains a consensus Buy, with analysts expecting the stock to rise by almost 22% further.
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Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) has been in a sweet spot amid the accelerated demand for semiconductors driven by artificial intelligence. As evidence of its importance in the AI value chain, a Bloomberg report from November 8 stated that Nvidia CEO Jensen Huang considered TSMC to be critical to Nvidia’s success and had requested that the company scale up its supplies to meet Nvidia’s ever-rising chip needs. Huang was meeting TSMC’s CEO C.C. Wei on the sidelines of the latter’s company event. At the event, Wei had said that his company would continue to see record sales every year.
Earlier, on October 27, Needham analyst Quinn Bolton highlighted the potential for TSMC’s 3nm FinFET (N3) capacity to expand, which could lead to substantial revenue growth. He also expected higher volumes from Nvidia’s Rubin GPU in 2026, and thus increased his growth and capital expenditure forecasts for 2026. Bolton had reaffirmed his Buy price target with a $360 price target.
Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) is the world’s largest dedicated semiconductor foundry. It produces advanced integrated circuits for global industries, including technology, communications, and automotive.
While we acknowledge the potential of TSM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
