Bank of America Securities Maintains Buy Rating on Taiwan Semiconductor Manufacturing (TSM) Stock

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the Best Fundamentally Strong Stocks to Buy. On November 10, Bank of America Securities analyst Mike Yang maintained a “Buy” rating on the company’s stock, setting a price objective of $360.00. The analyst’s rating is backed by the company’s strong sales performance in October.

On the consolidated basis, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s revenue for October 2025 came in at ~NT$367.47 billion, reflecting 11.0% growth from September 2025, and 16.9% growth from October 2024. As per the analyst, this growth was driven by the strong demand for high-end mobile devices as well as high-performance computing products, mainly in the GPU and ASIC sectors.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s ability to maintain gross margins and operating margins at the anticipated levels helps the favourable outlook. Furthermore, the demand for cloud AI infrastructure is projected to continue into 2026, thanks to the significant capital expenditures from well-established hyperscalers.

This demand, along with supply chain constraints in advanced manufacturing processes, demonstrates a strong backlog for Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s products, added Yang.

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.