Taiwan Semiconductor Manufacturing (NYSE: TSM) had a strong year in 2025, with a 54% gain. Wall Street rates it a buy, with 98% of analysts recommending it. The average target price is $408.50, but some believe it can go much higher.

TSMC is a key player in the semiconductor industry, working with major AI developers like Nvidia and Apple. With increasing AI spending from companies like Amazon and Alphabet, TSMC is raising its capex to meet demand and expects a 30% sales increase in 2026.

Stock performance is tied to company results, and TSMC’s P/E ratio of 31 is attractive for its growth potential. Analysts expect a 23% increase in 2026 EPS and a 31% sales increase. With a highest price target of $520, the stock has room to grow.

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Read more at Nasdaq: Why Wall Street Is Wrong About Taiwan Semiconductor Manufacturing Stock