Taiwan Semiconductor Manufacturing Co. (TSMC), trading under the ticker TSM, is making headlines as its stock surges to new heights, fueled by relentless demand for advanced AI chips and bullish analyst forecasts. Investors are scrambling to get a piece of the action as TSMC cements its role at the heart of the global tech supply chain.
AI Boom Powers TSMC’s Meteoric Rise
TSMC’s stock has soared nearly
18% in the past month alone, recently trading around
$294 and even touching the
$304 mark during intraday sessions. This rally is driven by explosive growth in the company’s 3nm and 5nm chip segments, which are critical for powering next-generation artificial intelligence applications. TSMC’s AI-related revenues tripled in 2024 and are expected to double again in 2025, putting the company at the center of a multi-year growth cycle.
In its latest earnings report, TSMC posted a staggering
44% year-over-year revenue jump to
$30.07 billion for Q2 2025, with earnings per share (EPS) up
61% to
$2.47. The company has responded to surging demand by ramping up capital expenditures, planning to invest between
$38 billion and
$42 billion in 2025—far outpacing last year’s
$29.8 billion.
Analyst Price Targets: Sky’s the Limit?
Wall Street is buzzing with optimism. Multiple analysts have raised their price targets for TSMC:
-
Huatai Securities: Boosted its target to
$320, citing TSMC’s rising average selling prices and profitability, especially since the launch of its N3 node.
-
Barclays: Raised its target to
$325, calling TSMC the top semiconductor pick amid the AI expansion.
-
Bank of America Securities: Reiterated a Buy rating with a target of
$290.
Some forecasting models even suggest TSMC could hit
$346 by the end of 2025 and potentially reach
$965 by 2029, though such long-term predictions should be taken with caution.
Technical Trends and Investor Sentiment
Technical indicators remain bullish. TSMC is trading well above its key moving averages, with momentum strong but not yet in overbought territory. The 14-day RSI sits at 68.57, and the MACD has generated a buy signal, suggesting the uptrend could continue if broader market conditions remain favorable.
Investor sentiment is further buoyed by TSMC’s dominant position as the preferred manufacturing partner for AI accelerators, including chips for NVIDIA, Marvell, and Broadcom. The company’s scale and technological leadership make it uniquely positioned to capitalize on the AI revolution.
What’s Next for TSMC Stock?
With AI infrastructure spending showing no signs of slowing, TSMC’s growth prospects look robust. However, investors should keep an eye on broader market volatility and potential shifts in interest rate expectations, which could impact tech stocks across the board.
Key Takeaways:- TSMC stock is surging on AI chip demand and strong earnings.
- Analysts are raising price targets, some as high as $325.
- Technical indicators and investor sentiment remain bullish.
- Long-term forecasts are optimistic, but market risks persist.
For those watching the semiconductor space, TSMC is the stock to watch as the AI gold rush continues.
Sources
1. TSMC stock forecast: Third-party targets - Capital.com
2. TSMC (TSM) Price Forecast for 30 days: Today, Tomorrow, Next Week
3. LRCX vs. TSM: Which Semiconductor Stock Is the Better Bet Right ...
4. Taiwan Semiconductor Manufacturing (TSM) Stock Price, News ...
5. TSM Soars 18% in a Month: Should You Buy, Sell or Hold the Stock?
6. TSMC (TSM) Stock Price Prediction for 2025, 2026, 2030-2040
7. AMAT vs. TSM: Which Semiconductor Stock is the Better Buy?
8. This Stock Quietly Benefits From Oracle and NVIDIA's AI Surge
