TSMC (TSM) has been on a tear, climbing 7% over the past week, driven by strong demand for AI processors and growing optimism from analysts. Investor sentiment has also been supported by insider activity. Director Ursula Burns recently bought 1,000 TSMC shares in a transaction worth about $322,000, a move often seen as a sign of confidence from within the company. Meanwhile, Wall Street remains upbeat ahead of the Q1 results, with analysts pointing to roughly 25% upside from current levels.
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Wall Street expects TSMC to post earnings of $3.26 per share, nearly 52% higher than a year ago. Meanwhile, revenue is forecast at $35.25 billion, up from $25.52 billion in the same quarter last year.
Analysts have also turned more positive ahead of the results. Citigroup recently raised its price target on TSMC to NT$2,800 from NT$2,600 and maintained a Buy rating, citing stronger-than-expected AI demand along with gains from capacity expansion and advanced packaging.
Similarly, Barclays analyst Simon Coles reiterated a Buy rating on the stock with a $450 price target.
Is TSM Stock Worth Buying for the Long Term?
Because leading AI chipmakers such as Nvidia (NVDA), AMD (AMD), and Broadcom (AVGO) outsource production to TSMC, the company is well positioned to benefit from the AI boom regardless of which chipmaker leads the market. This gives TSMC a more stable role as a key supplier in the AI ecosystem.
That strength is clearly visible in its demand trends. TSMC’s advanced 3nm and 5nm capacity is fully booked, while its transition to 2nm (N2) is progressing faster-than-expected.
From a valuation standpoint, TSM shares trade at a forward P/E of about 28x, which is below the sector average of 32.2x, suggesting the stock is relatively attractive compared to peers.
Overall, analysts remain bullish, expecting strong earnings growth supported by sustained AI demand, which supports the long-term investment case for the stock.
What Is TSM’s Stock Forecast?
According to TipRanks, TSM stock has a Strong Buy consensus rating based on seven Buys and one Hold assigned in the last three months. At $423.50, TSMC’s average stock price target implies an upside of 24.91% from the current level.
