Taiwan Semiconductor Begins Production of 2nm Chips, Supporting AI Data Center Buildout
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Market Leadership: Taiwan Semiconductor plays a crucial role in AI data center construction, which is expected to accelerate in 2026, potentially expanding its market share and solidifying its industry leadership with a $1.6 trillion market cap.
- Technological Innovation: The newly launched 2nm chips consume 25% to 30% less power at the same speed, not only enhancing energy efficiency but also addressing the urgent energy demands of AI buildouts, thereby strengthening the company's competitive edge in high-performance computing.
- Financial Performance: Taiwan Semiconductor reported a gross margin of 57.75% in Q3, indicating robust profitability that is expected to drive future investment returns and attract investor interest.
- Stock Potential: With the rapid advancement of AI technology, Taiwan Semiconductor's stock is poised for market-beating returns in 2026, reflecting its dual advantages in technology and market positioning.
TSM
$302.84+Infinity%1D
Analyst Views on TSM
Wall Street analysts forecast TSM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSM is 348.25 USD with a low forecast of 290.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
8 Buy
1 Hold
0 Sell
Strong Buy
Current: 298.800
Low
290.00
Averages
348.25
High
400.00
Current: 298.800
Low
290.00
Averages
348.25
High
400.00
About TSM
Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based company mainly engaged in the provision of integrated circuit manufacturing services. The integrated circuit manufacturing services include process technology, special process technology, design ecosystem support, mask technology, 3DFabricTM advanced packaging and silicon stacking technology services. The Company has completed the transfer and mass production of 5nm technology, and is engaged in the research and development of 3nm process technology and 2nm process technology. The product application range covers the entire electronic application industry, including personal computers and peripheral products, information application products, wired and wireless communication system products, servers and data centers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
