​Taiwan Semiconductor Manufacturing (TSM) Ranks Among Our Best Stocks to Buy and Hold for the Next 5 Years

​Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) topped consensus estimates during fiscal Q1 2026 earnings, released on April 16. Wall Street has been bullish on the stock ever since, as 98% of the 51 analysts covering the stock have a Buy rating. Moreover, the 12-month average price target suggests more than 22% upside from the current level. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is also one of our Best Stocks to Buy and Hold For the Next 5 Years.

​During the quarter, the company posted $35.9 billion in revenue, reflecting more than 39.2% year-over-year growth and topping estimates by $404.52 million. Moreover, the EPS of $3.49 also topped $0.16. Management noted that the growth was driven by strong demand for 3-nanometer technology and high capacity utilization across all factories.

​The 3-nanometer technology accounted for 25% of wafer revenue during the quarter. The company also provided a positive outlook for Q2 2026. The company projects revenue between $39.0 billion and $40.2 billion, representing a 10% sequential increase.

​Recently, on April 17, DA Davidson reiterated a Buy rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) with a price target of $450. The firm noted strong fiscal Q1 results and an encouraging Q2 outlook as key factors behind the optimistic rating.

​Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures and sells advanced chips used in artificial intelligence applications.

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