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Strong Analyst Sentiment on Taiwan Semiconductor Manufacturing (TSM) As AI Demand Drives Massive 2026 Capital Spending

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is included in our list of the 13 Best Extremely Profitable Stocks to Invest in Now.

As of February 2, 2026, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) maintains bullish analyst sentiment, with a consensus price target of $410. This implies upside potential of 24.03%, after the stock has already surged 40.54% over the past six months and over 10% in 2026. Nearly all the analysts maintain a bullish rating on the stock.

As a sign of confidence in the company’s long-term AI-driven demand, Bloomberg reported on January 15, 2026, that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) plans capital spending of $52–$56 billion in 2026, an increase of at least 25% compared to 2025. The company’s U.S.-listed ADRs are expected to increase by 5.6% in 2026, with revenue growth projected to reach roughly 30%, which beats average analyst expectations.

Amid strong broader analyst sentiment, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) drew TD Cowen’s attention on January 16, 2026, when the firm increased its price target to $370 from $325 while keeping a ‘Hold’ rating. The update came in response to strong production execution and better-than-expected quarterly results.

Furthermore, Morgan Stanley raised its target by 5% to NT$2,088 on the same day, pointing to strong gross margins, rising demand for AI, and increased capital spending for advanced-node expansion. Meanwhile, Barclays raised its target to $450 with an ‘Overweight’ rating, describing the fourth-quarter results as strong across all areas.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures advanced integrated circuits and semiconductors for AI, computing, communications, automotive, and consumer electronics worldwide.

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.

READ NEXT: What Are the Best Stocks to Buy Right Now? and 10 Stocks Under $1 That Will Explode.

Disclosure: None.

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