Taiwan Semiconductor Manufacturing Company Limited (TSM) Stock

TSMC's dominant market position, strategic alliances with Apple and Nvidia, and cutting-edge technologies make its current valuation too cheap to ignore despite geopolitical risks. TSMC's Q3 2024 financials show strong revenue growth, high gross margins, and robust demand for its advanced semiconductor technologies, particularly in AI and smartphones. The company's solid financial health, strategic CapEx investments, and bullish Q4 2024 guidance underscore its resilience and potential for continued growth.

Shares of Taiwan Semiconductor Manufacturing (TSM -0.61%) are sitting close to their all-time high, and Barclays analyst Simon Coles sees more upside in the next year. Last week, the analyst maintained the firm's overweight (buy) rating on the stock but raised their price target from $215 to $240.

TSMC (TSM) closed the most recent trading day at $190.08, moving -0.61% from the previous trading session.

TSM is 18% undervalued, driven by its unique strategic positioning, cutting-edge technologies, and strong financials. TSM's focus on high-margin advanced technologies and diversified revenue mix ensures stellar profitability and robust growth, especially with AI tailwinds. TSM's strategic partnerships with leading chip design companies and commitment to evolving technologies position it for future profitability expansion.

My Favorite Artificial Intelligence Stock to Buy Right Now (Hint: It's Not Nvidia)

TSM's 80% YTD rally highlights its AI-driven growth and innovation, making it a compelling buy for long-term investors.

Should You Buy Taiwan Semiconductor Manufacturing Stock Before Jan. 20?

With the tech rally taking things into high gear this year, I'm sure many new retail investors are asking themselves which big name in tech will be next to split.

Taiwan's President Lai Ching-te urged the European Union to sign an economic partnership agreement, emphasising benefits for semiconductor collaboration and democratic solidarity, according to Reuters. Speaking at a Taiwan-EU investment forum in Taipei, Lai highlighted the importance of secure supply chains and mutual resilience in the face of growing authoritarian threats.