While many big tech stocks have had a weak start to 2026, Taiwan Semiconductor Manufacturing Company (TSM) is standing out. The company has stayed resilient even as major customers like Nvidia (NVDA) and Apple (AAPL) have seen their shares decline.
Claim 30% Off TipRanks
Forget margin or options. Here's how the pros trade NVDAOn Friday, March 27, 2026, tech stocks came under pressure, but TSMC ended slightly higher to close at $326.81. While many companies are facing concerns about high valuations, TSMC is still up 7.8% so far this year.
Meanwhile, other major tech stocks have struggled this year. Nvidia is down about 10%, while Apple has fallen 8%. Meta (META) has dropped around 21%, marking the biggest decline among the group, followed by Tesla (TSLA), which is down about 20%. Advanced Micro Devices (AMD) has fallen roughly 6%.
Why TSMC Is Holding Up While Other Tech Stocks Struggle
TSMC stands out because it makes the chips that other companies design. As the world’s largest contract chip maker, it supplies advanced chips to firms like Nvidia, AMD, and Apple. This keeps demand steady, especially as AI-related spending continues to grow.
The company’s strength is also backed by solid financial results. Recently, TSMC reported a 35% jump in fourth-quarter profit, driven by strong demand for AI chips. Net income came in at NT$505.74 billion ($16 billion), while revenue rose 25.5% to NT$1.046 trillion ($33.73 billion), both above expectations.
At the same time, TSMC is investing heavily to expand production. It is building new factories in the U.S., Japan, and Germany, while demand for its advanced 3nm and 2nm chips remains strong. This helps the company maintain pricing and margins better than many other tech firms.
Because of this, TSMC is seen as more stable compared to other tech stocks, as it plays a central role in the global chip supply chain.
Is TSMC a Buy or Sell Right Now?
Recently, D.A. Davidson analyst Gil Luria started coverage on TSMC with a Buy rating and a $450 price target, implying 38% upside from the current levels. The firm says TSMC has a strong edge in advanced chipmaking, calling it a “durable” advantage as AI demand grows. It also noted the company’s ability to turn new chip designs into “high volume” production, giving it a steady lead over rivals.
Turning to Wall Street, analysts have a Strong Buy consensus rating on TSMC stock based on seven Buys and one Hold assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSMC price target of $423.50 per share implies 29.61% upside potential.
