What Does the Street Think About Taiwan Semiconductor Manufacturing (TSM)?

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the best long term growth stocks to buy according to hedge funds. On January 9, Citi lifted the price target on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) to NT$2,450 from NT$1,800 and reaffirmed a Buy rating on the shares. The firm also added an “upside 30-day catalyst watch” on the stock, stating that it expects Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) to issue a positive outlook on solid demand for its process node and advanced packaging business when reporting earnings.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) announced its December 2025 revenue report on the same day, reporting that the net revenue for December 2025 reached approximately NT$335.00 billion on a consolidated basis, reflecting a decrease of 2.5% from November 2025 and a growth of 20.4% from December 2024. In addition, revenue for January through December 2025 totaled NT$3,809.05 billion, up 31.6% compared to the same period last year.

Reuters reported the same day that the 20.45% increase in Q4 revenue surpassed the market forecast, with demand for Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) products surging in response to the growing interest in AI applications.

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.