Taiwan Semiconductor Manufacturing Company Limited (TSM)'s Positive Outlook Sparks Expectations of a Long-Term AI Boom

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is among the Ken Fisher Stock Portfolio: 12 Best Stocks to Buy.

On January 15, 2026, Bloomberg reported that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) planned capital spending of $52 billion to $56 billion in 2026, at least 25% higher than in 2025, showing confidence in long-term demand from the global AI boom. In 2026, the company anticipates revenue growth of about 30%, surpassing the average analyst estimate. The corporation’s U.S.-listed ADRs jumped as much as 5.6% after the outlook.

Separately, TheFly on Jan 16, 2026, reported that TD Cowen boosted its price objective on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) to $370 from $325 and maintained a Hold rating. The corporation credited production execution for the revision, which came after better-than-expected quarterly results. Furthermore, TD Cowen revised its 2026 growth forecast for TSMC to 30% year over year, in line with the company’s anticipated surge in revenue for the period.

The stock is up by 6.24% YTD as of January 29, 2026.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) produces and markets wafer semiconductor devices and integrated circuits.

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.