Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM) is one of the best growth stocks to buy according to analysts. On August 15, Bernstein reiterated its Outperform rating on Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM), with a price target of $249.00. That represents an implied upside of only 4.1% from the current price of $239.1.
A close-up of a complex network of integrated circuits used in logic semiconductors.
However, Bernstein cited the Taiwanese company’s strategic importance in the global semiconductor landscape, emphasizing that it accounts for roughly 15–25% of the worldwide wafer fab equipment (WFE) market. That is massive, especially considering the whole of China’s share of 30–40%.
Bernstein also cited that a significant share of the company’s capital expenditures is allocated beyond just traditional wafer fabrication. According to the firm, TSMC is increasingly investing higher amounts in infrastructure, packaging, and testing technologies. These are critical components in advanced chip production.
Last month, the company delivered a stellar Q2 2025 performance, with revenue climbed to NT$933.79 billion (US $30.07 billion), up 38.6 % year-over-year; while net income reached NT$398.27 billion (about US $13.53 billion), and diluted EPS came in at NT$15.36 (US $2.47 per ADR), a whopping 60.7 % jump year-over-year.
While we acknowledge the potential of TSM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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