Taiwan Semiconductor Manufacturing (NYSE:TSM | TSM Price Prediction | TSM Price Prediction) is the operating system behind the AI buildout.
Taiwan Semiconductor is riding on surging AI demand, advanced-node adoption and global capacity expansion as revenues and earnings maintain strong growth momentum.
TSMC offers premier exposure to advanced computing and AI-driven semiconductor demand, with a dominant 73%+ foundry market share. TSMC's robust economic moat, technological leadership, and deep customer ties underpin high ROTC (~23.6%) and ROIC (~32.5%), far exceeding WACC. My fair value estimate is ~$527, indicating ~29% upside from current levels, justifying a 'Buy' rating based on GARP metrics and risk-adjusted returns.
In the most recent trading session, TSMC (TSM) closed at $410.12, indicating a -2.11% shift from the previous trading day.
Taiwan Semiconductor raises 2026 CapEx to $60B-$64B and plans higher dividends as AI, HPC and 5G demand fuels growth.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
Taiwan Semiconductor Manufacturing (NYSE:TSM | TSM Price Prediction) trades at $413.41 as of the August 18 close.
David Tepper's Appaloosa Management disclosed three especially large positions in its second-quarter filing, and at today's prices we see the setups differently across Apple (NASDAQ:AAPL | AAPL Price Prediction) at $305.93, Taiwan Semiconductor Manufacturing (NYSE:TSM) at $426.35, and CoreWeave (NASDAQ:CRWV) at $105.26, with the risk/reward tilting cautious, constructive, and skeptical respectively.
TSMC is growing at the faster end of its historical range. The company's CEO believes this elevated growth rate will persist through the end of the decade.
Grading the AI buildout's three load-bearing names at current prices: Microsoft (NASDAQ:MSFT | MSFT Price Prediction) at $502.03 is a buy, Taiwan Semiconductor Manufacturing (NYSE:TSM) at $421.97 is a buy, and AMD (NASDAQ:AMD) at $467.42 is a hold.
Taiwan Semiconductor's July revenues jump 44.7% as AI demand stays robust, N2 ramps up, and global N3 expansion supports growth.
With the takeoff of agentic AI earlier this year, the central processing unit market is set for faster growth and could become the new growth driver for TSMC, Bernstein analysts said.