Here’s What the Wall Street Thinks About Taiwan Semiconductor Manufacturing Company (TSM)

​Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is 1 of the High-Flying Tech Stocks to Buy. On January 19, DBS reiterated a Buy standing connected the banal with a terms people of $391. Earlier, connected January 16, TD Cowen maintained a Hold standing connected the banal and raised the terms people from $325 to $370.

​Analysts astatine TD Cowen noted that they person different upside quarterly outlook for the company. This optimistic outlook is based connected the institution raising its semipermanent gross maturation people to 25% CAGR from 2024 to 2029.

​The institution besides raised its outlook for the AI and unreality request and present expects request to beryllium successful the scope of mid 50% to precocious 50%. The steadfast noted that TSM’s 2026 superior expenditure of $52 cardinal to $56 cardinal reflects that the institution expects request to stay beardown passim the year, which is besides a bully motion for the semiconductor sector. TD Cowen besides described the guidance of 63% to 65% Q1 gross margins arsenic strong. However, contempt this beardown outlook, the steadfast inactive maintained a Hold rating. This is owed to the upcoming dilution from the N2 node ramp and overseas fabs starting successful H2 2026, owed to higher archetypal costs. This pressures margins contempt near-term strength.

Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM), unneurotic with its subsidiaries, manufactures, packages, tests, and sells ICs and different semiconductor devices successful Taiwan, China, Europe, the Middle East, Africa, Japan, the US, and internationally.

While we admit the imaginable of TSM arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published astatine Insider Monkey.