TSMC (TSM): AI Boom, Revenue Upside, and Attractive Valuation Through 2027

3 days ago 5

Abdul Rahman

Thu, January 8, 2026 astatine 9:09 AM CST 2 min read

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the must-buy AI stocks to put in. On December 18, Morgan Stanley told clients to ramp up their positions successful Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) close away. The concern slope explained that it expects a almighty AI‑driven upcycle, faster maturation than the marketplace expects, and rising profitability into 2026. To backmost up the claim, the pb analyst, Charlie Chan, raised the terms people for TSMC shares to NT$1,888 from the erstwhile NT$1,688. He besides kept an Overweight standing connected the stock.

AI Boom, Revenue Upside, and Attractive Valuation Through 2027

Morgan Stanley expects TSMC to usher 2026 gross maturation successful the mid‑20% range, but believes the institution volition really present person to 30% year‑over‑year growth. The slope models 2026 gross maturation of 30%, which it says is good supra the Street statement of 22%. Chan and his squad reason that statement underestimates some the spot and durability of TSMC’s AI and advanced‑node demand. This, they said, creates upside arsenic that maturation is recognized.

The analysts tied their higher maturation presumption straight to dense investment. They stated that they arrived astatine that 30% gross maturation forecast “based connected the forecast 2026 superior expenditure of $49 cardinal and continued 3‑nanometer capableness expansion.” The analysts besides argued that the banal remains charismatic astatine 16x oregon 13x our 2026/2027 mean EPS, adjacent aft the people hike.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest declaration chipmaker. It produces precocious semiconductors utilized successful AI grooming and inference, including GPUs and customized accelerators.

While we admit the imaginable of TSM arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.