Citi Remains Bullish on Taiwan Semiconductor (TSM) Amid Growing Demand for AI-Driven Chips

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is included in our list of the 14 hedge fund favorites with strong setup in 2026.

Citi Remains Bullish on Taiwan Semiconductor (TSM) Amid Growing Demand for AI-Driven Chips

As of March 30, 2026, Citigroup reaffirmed its “Buy” rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), raising its price target to NT$2,800 from NT$2,600.

After incorporating the company’s growing demand for AI-driven chips in its model, the investment firm boosted its earnings projections through 2028. The $4.08 and $5.18 EPS estimates, set for 2027 and 2028, respectively, are 18% and 28% higher than the Bloomberg consensus. Additionally, the firm projects that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s net profit would increase from roughly $53.7 billion in 2025 to roughly $75.8 billion in 2026, reaching $105.8 billion and $134.2 billion in 2027 and 2028, respectively.

Meanwhile, on March 16, 2026, Bernstein SocGen Group raised the Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s price target to $351 from $330, while maintaining an “Outperform” rating. This was due to the ongoing demand for both AI and non-AI products. According to Bernstein, while XPU demand still exceeds capacity and should underpin future growth, AI revenue is expanding beyond XPU into HBM base-die production.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest semiconductor foundry and is engaged in the manufacturing and designing of semiconductor chips. These chips are used by companies across several end markets, including personal computers and peripheral products, consumer electronics, wired and wireless communications systems, and automotive and industrial equipment.

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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