Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a top AI stock, with BofA Securities analyst Brad Lin raising the price target to $470.00 on Jan 15. The firm’s tech leadership, pricing power, and capacity stability are praised, with a projected 30% CAGR in wafer pricing from 2025-2027.

TSMC’s tech leadership is expected to remain strong, with a 15% CAGR in advanced nodes balanced by mature node declines. Analysts anticipate stable wafer capacity and shipment, with sales projected to outgrow depreciation at a 20% CAGR, expanding gross margins to 64-65% by 2026-27.

TSMC manufactures advanced chips for AI applications, offering investment potential. However, other AI stocks may provide greater upside with less downside risk. For an undervalued AI stock poised to benefit from tariffs and onshoring trends, check out the free report on the best short-term AI stock.

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Read more at Yahoo Finance: Wall Street Gets More Bullish on TSMC’s AI Dominance