Wall Street Bullish on Taiwan Semiconductor Manufacturing (TSM), Here's Why

​Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the Best Non-US Stocks to Buy According to Hedge Funds. On December 10, Mike Yang from Bank of America Securities reiterated a Buy rating on the stock with a price target of $390. On the same day, Bernstein SocGen Group also reiterated a Buy rating on the stock with a $330 price target.

​The ratings follow the company’s release of its November 2025 revenue report. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) reported NT$ 343.614 billion in monthly revenue, reflecting 24.5% year-over-year growth. However, the November revenue was slightly lower by 6.5% from October 2025, when the company generated NT$367.473 billion.

​Analysts at BofA noted that this robust year-over-year growth was driven by greater than expected demand for high-end mobile chipsets and solid growth in high-performance computing and AI sectors. Moreover, the comparison also benefited from favorable foreign exchange trends. The analyst highlighted that there are concerns regarding margin compression due to investment in new technologies. However, BofA anticipates stronger pricing and a higher utilization rate to keep the margins strong.

​Moreover, Bernstein SocGen Group noted that Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) October and November revenues totaled NT$711 billion. This makes almost 71% of the company’s Q4 2025 guidance at mid-point. The firm highlighted that if the company continues to perform in a similar fashion during December, it will allow the company to exceed both the guidance midpoint and consensus estimates by 3% to 4%.

​Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the largest contract semiconductor manufacturer in the world. Some of its prominent customers include semiconductor companies that outsource all or part of their chip production, including Advanced Micro Devices, Nvidia, Broadcom, and more.

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.