12 Trending AI Stocks on Wall Street

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3. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Number of Hedge Fund Holders: 194

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the 12 Trending AI Stocks on Wall Street. On December 8, Bernstein SocGen Group raised the price target on the stock to $330.00 from $290.00, while maintaining an “Outperform” rating. The firm sees TSM as a “quality compounder” driven by CoWoS ramp, AI demand, and pricing power across nodes.

According to the firm, increased CoWoS (Chip on Wafer on Substrate) capacity will serve as a major driver for revenue growth toward Taiwan Semi’s 5-year AI target.

The firm has raised TSMC CoWoS capacity to 125K wpm by the end of 2026, combined with contributions from OSATs (Outsourced Semiconductor Assembly and Test providers). This will bring the total CoWoS capacity to 1250K/yr in 2026.

Bernstein believes that these numbers will be sufficient to support the recently announced projects, including an estimated $0.5 trillion from Blackwell and Rubin for NVIDIA in 2025 and 2026.

The firm also noted improving mature-node demand, while stating that that N2 node development and price increases on N3/5 nodes will support smartphone revenue.

Based on these factors, the firm anticipates TSMC’s revenue to grow 23% this year and 20% in 2027.

“Outperform with 1-year price target at NT$1,800.00 on 20x forward P/E. We’re slightly above consensus on revenue, a tad below on margins, but 5% above on EPS. We view TSMC a quality compounder and a core holding for investors.”

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

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