Here’s What Analysts Are Saying About Taiwan Semiconductor Manufacturing (TSM) Post Earnings

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the best strong buy growth stocks to buy according to hedge funds. TD Cowen lifted the price target on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) to $370 from $325 on December 16 and maintained a Hold rating, telling investors that it updated its model after the company reported better-than-expected quarterly results supported by manufacturing excellence.

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Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) announced its fiscal Q4 2025 consolidated results on January 15, reporting consolidated revenue of NT$1,046.09 billion, net income of NT$505.74 billion, and diluted earnings per share of NT$19.50.

Fiscal Q4 revenue rose 20.5% year-over-year, while net income and diluted EPS both rose 35.0%. In US dollars, fiscal Q4 revenue reached $33.73 billion, up 25.5% year-over-year and up 1.9% from the previous quarter. Wendell Huang, Senior VP and Chief Financial Officer of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), stated that the company’s strong fiscal Q4 results were supported by solid demand for its leading-edge process technologies, and management expects these trends to continue in fiscal Q1 2026.

Following the company’s earnings release, Needham lifted the price target on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) to $410 from $360 on January 15 and maintained a Buy rating on the shares. The firm cited the strong earnings release and guided key 2026 metrics that all came in above Wall Street’s expectations. It added that the company also guided Q1 revenue to rise around 4% sequentially, defying historical seasonality, attributed to meticulous capacity planning leading to increased wafer shipments for HPC customers in the first half of the year, when smartphone demand is in the seasonal lull period.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the largest contract semiconductor manufacturer in the world. Some of its prominent customers include semiconductor companies that outsource all or part of their chip production, including Advanced Micro Devices, Nvidia, Broadcom, and more.

While we acknowledge the potential of TSM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TSM and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.