Bernstein Reaffirms Outperform on TSMC (TSM) Amid Strong AI Chip Demand

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) ranks among the best fast growth stocks to buy now. With a price target of NT$1,444, Bernstein reaffirmed its Outperform rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) on September 10. The company is expected to report third-quarter revenue above its own guidance, aided by strong demand for AI chips and expanding non-AI segments.

Citing solid export data and indicators of ongoing demand for AI through 2026, analysts predict that TSMC’s revenue would increase by 33% in 2025, exceeding the company’s prediction of 30%. Demand for non-AI is also accelerating, helped in part by pull-ins due to tariffs.

Bernstein stated that beginning in the first quarter of 2026, price increases of 5–10% on 5-nanometer and more sophisticated nodes should help counteract foreign exchange headwinds and growing costs overseas.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a leading Taiwanese company that offers semiconductor manufacturing services.

While we acknowledge the potential of TSM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.