Taiwan Semiconductor Manufacturing Company Limited (TSM) Stock: Needham Reiterates Buy Rating, $270 Price Target

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is among the 13 Best Global Stocks to Buy Right Now. On July 17, Needham reiterated a Buy rating for the stock and maintained its earlier price target of $270 per share.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) Stock: Needham Reiterates Buy Rating, $270 Price Target

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The update follows the chipmaker’s second-quarter results, in which it reported a 60.7% year-over-year increase in net profit, surpassing market estimates, amid a surging demand for semiconductors used in AI applications.

Needham analysts Charles Shi and Ross Cole wrote the following about Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s recent earnings in an investor note:

“TSMC delivered a strong beat-and-raise quarter, with the 3Q25 revenue outlook vastly exceeding consensus estimates and implied EPS guidance well ahead of the Street, despite the GM headwinds due to FX and overseas fab production ramp. On the back of strong 2Q25 and 3Q25, TSMC raised the FY25 revenue growth outlook from 24-26% to ~30%.”

However, the analysts also pointed out Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s guidance for the fourth quarter, which implies a high single-digit percentage quarter-over-quarter decline. This is the first time since Needham initiated coverage of the stock in 2021 that TSMC has guided to a decline in Q4.

The analysts added that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s management discussed in the earnings call about the ongoing macro uncertainties that have led them to be conservative on guidance for the quarters ahead.

While we acknowledge the risk and potential of TSM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.