Morgan Stanley Raises PT on Taiwan Semiconductor Manufacturing Company (TSM) Stock

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the Best Long Term Growth Stocks to Buy Now. On September 30, Morgan Stanley raised the PT on the company’s stock to NT$1,588 from NT$1,388, reflecting healthy AI demand, stable foreign exchange, and pricing power. The firm further added that AI semi demand has been demonstrating upside, showcasing growth in both AI application-specific integrated circuits and GPUs into 2026. On advanced processes, the firm noted that customers have been embracing TSMC’s 2nm, A16, and A14 technologies in a bid to achieve better energy efficiency.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s business in Q2 2025 was helped by continued strong AI and HPC-related demand. On a consolidated basis, revenue for August 2025 came in at ~NT$335.77 billion, reflecting a rise of 3.9% from July 2025 and 33.8% on a YoY basis. Advanced technologies, defined as 7-nanometer and more advanced technologies, made up 74% of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s total wafer revenue in Q2 2025.

Brown Advisory, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:

“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM): Manufactures, distributes and tests integrated circuits, silicon wafers, diodes and related semiconductor components. Taiwan Semiconductor Manufacturing benefits from its leadership in leading node manufacturing which allows it to take market share and benefit from the strong demand environment for high-performance computing and AI infrastructure.”

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.

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