Is TSMC (TSM) One of the Best Stocks for the Next Decade?

Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) is one of the best stocks for the next decade. Wall Street analysts continue to be bullish on TSMC.

Earlier on December 7, Bernstein raised the firm’s price target on Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) to $330 from $290 with an Outperform rating. The firm highlighted that TSMC is ramping up its Chip-on-Wafer-on-Substrate capacity to 125,000 wafers per month by the end of 2026. While an increase, Bernstein noted that this capacity will barely suffice to meet the demand for Nvidia’s upcoming Blackwell and Rubin chip architectures through 2025 and 2026, leaving little room for additional projects.

Later on December 10, the analysts at Bernstein SocGen Group reaffirmed their Outperform rating and $330 price target for Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) and noted that the firm is currently outpacing both its own fourth-quarter guidance and market consensus. This optimism follows a strong November revenue report, where TSMC recorded NT$344 billion, which marked a significant 24.5% increase year-over-year.

The company’s strategic importance in the AI ecosystem continues to attract bullish sentiment across Wall Street. Beyond Bernstein’s target, BofA raised its own price objective to $360, citing TSMC’s clear trajectory in the AI sector. With production ramping up for next-gen AI accelerators and the latest mobile processors, TSMC remains the primary gateway for the hardware required to power global high-performance computing.

Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM), together with its subsidiaries, manufactures, packages, tests, and sells ICs and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the US, and internationally.

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.