Needham Maintains Buy on TSMC (TSM), Strong Margins, AI Growth

Taiwan Semiconductor Manufacturing Company Limited (TSM) is highlighted as one of the AI Stocks in the Spotlight This Week. Needham analyst Charles Shi raised the price target on TSM to $360.00 and maintained a “Buy” rating following the company’s strong third-quarter performance. TSM reported third-quarter revenue above guidance, robust gross margins at 59.5%, and only a 1% quarter-over-quarter decrease in fourth-quarter revenue guidance.

The company also raised its full-year 2025 revenue growth forecast and narrowed its capital expenditure guidance. TSM’s AI outlook is positive, with plans to accelerate its Arizona build-out.