Bullish analysis on Taiwan Semiconductor Manufacturing Company (TSM) due to strong AI sector growth.

From Yahoo Finance: 2025-04-15 12:03:00

Taiwan Semiconductor Manufacturing Company Limited (TSM) is analyzed in a bullish thesis by Oguz Erkan. TSM’s share price was $155.84 on April 14th, with a trailing P/E of 22.60 and forward P/E of 17.48. Analysts maintain a ‘Buy’ rating due to strong AI tailwinds and impressive financial growth.

Despite concerns over tariffs impacting semiconductor demand, TSMC remains dominant in the market. With a 5-year revenue CAGR of 16%, net profit margin of 40%, and return on equity of 30%, TSMC holds over 90% market share in advanced chip manufacturing. The demand for semiconductors is expected to rise due to the expanding AI sector.

TSM is among the 30 most popular stocks among hedge funds, with 186 portfolios holding the stock at the end of the fourth quarter. While TSM presents a solid investment opportunity, some AI stocks may offer higher returns in a shorter timeframe. Investors seeking promising AI stocks trading at less than 5 times earnings should explore other options.

Read more: Taiwan Semiconductor Manufacturing Company Limited (TSM): A Bull Case Theory