Taiwan Semiconductor Manufacturing Company Limited (TSM) is a high-flying tech stock with a Buy rating and a price target of $391 by DBS on January 19. TD Cowen has a Hold rating with a price target raised to $370 on January 16, citing strong Q1 gross margins.

TD Cowen analysts forecast a positive quarterly outlook for TSM as the company raises its long-term revenue growth target to 25% CAGR from 2024 to 2029. The company also expects AI and cloud demand to be in the mid to high 50% range, reflecting strong market demand and a positive outlook for the semiconductor industry.

Despite the positive outlook, TD Cowen maintained a Hold rating on TSM due to potential dilution from the N2 node ramp and overseas fabs starting in H2 2026. The company’s 2026 capital expenditure of $52 billion to $56 billion indicates confidence in continued strong demand, despite margin pressures.

Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) manufactures and sells semiconductor devices globally. While TSM offers potential as an investment, analysts suggest exploring other AI stocks with greater upside potential and lower downside risks in the current market climate.

For more insights on potential investment opportunities, explore reports on stocks that are expected to double in the next three years and hidden AI stocks with growth potential. This article is originally published on Insider Monkey.

Read more at Yahoo Finance: Here’s What the Wall Street Thinks About Taiwan Semiconductor Manufacturing Company (TSM)