Taiwan Semiconductor Manufacturing Company Limited (TSM) is a Buy on Strong AI Chip Demand

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the champion blue-chip AI stocks to bargain now. On March 30, Citigroup reiterated a Buy standing connected Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and raised the terms people to NT$2,800 from NT$2,600.

According to Citigroup, the institution is well-positioned to payment from the accelerating artificial quality spot market. Consequently, the steadfast expects the company’s net per stock to summation by 18% successful 2027 to NT$130.72 and by 28% successful 2028 to NT$165.99. Net nett is besides projected to summation to NT$2.43 trillion successful 2026 from NT$1.72 trillion successful 2025. Revenue is projected to summation successful 2026 to NT$5.12 trillion.

Citigroup besides expects Taiwan Semiconductor’s artificial quality gross to turn by implicit 100% into 2027. The summation would travel connected CoWoS’ packaging capacity, increasing from 1.3 cardinal wafers successful 2026 to 2 cardinal successful 2027.

The robust gross and net summation would travel astatine the backmost of N3 and N2 capableness growth. The N2 node is projected to relationship for 29% of full gross successful 2027, up from 15% successful 2026. Citigroup expects Nvidia to go the archetypal A16 lawsuit for its Feynman GPU successful 2028, with Google and AWS AI chips migrating to N2 precocious 2027.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest autarkic semiconductor foundry, manufacturing precocious microchips for companies specified arsenic Apple, Nvidia, and AMD. It specializes successful fabricating chips designed by others for usage successful smartphones, AI information centers, and automobiles, and holds astir 72% of the planetary foundry market.

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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