TSMC Stock Surges on AI Demand, Analysts Project 29% Upside
Taiwan Semiconductor Manufacturing (TSM) shares have rallied 38% year-to-date to $278, buoyed by relentless demand for advanced chips powering AI infrastructure. The stock now commands a $1.14 trillion valuation at a 29.02 P/E ratio—a discount to AI-focused peers like Nvidia and AMD.
Wall Street sees further room for growth, with average price targets suggesting 29% near-term upside to $358. Long-term forecasts appear even more bullish, projecting $549 by 2030 as TSMC maintains its stranglehold on cutting-edge chip fabrication for industry leaders including Nvidia and AMD.
Geopolitical tensions remain the clearest threat to TSMC's dominance. The company's Taiwan-based operations sit at the crossroads of escalating U.S.-China semiconductor tensions—a risk factor that's kept the consensus rating at Hold despite fundamental strength.
