Should You Buy Taiwan Semiconductor Manufacturing Co Ltd (TSM) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Buy
Latest Price
342.300
1 Day change
1.17%
52 Week Range
351.330
Analysis Updated At
2026/01/26
Based on the data provided, Taiwan Semiconductor Manufacturing Co Ltd (TSM) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong financial performance, positive analyst sentiment, and growth in AI demand make it a compelling investment opportunity despite the minor pre-market dip.
Technical Analysis
The stock shows bullish moving averages (SMA_5 > SMA_20 > SMA_200), indicating a positive long-term trend. However, the MACD histogram is negative (-0.0325) and contracting, suggesting short-term consolidation. RSI is neutral at 61.795, and the stock is trading near its pivot level of 333.636, with key support at 321 and resistance at 346.273.
Options Data
Bearish
Open Interest Put-Call Ratio
Bearish
Option Volume Put-Call Ratio
The open interest put-call ratio of 1.4 and option volume put-call ratio of 1.15 indicate a slightly bearish sentiment in the options market. However, the overall trading volume is significantly higher than the 30-day average, suggesting strong interest in the stock.
Technical Summary
Sell
1
Buy
10
Positive Catalysts
2026/01/26 06:19:23
TSMC plans to invest $56 billion to meet rising AI demand, solidifying its market leadership.
Strong financial performance in Q3 2025, with revenue up 40.49% YoY and net income up 49.93% YoY.
Analysts have raised price targets significantly, with Barclays setting a target of $450 and Goldman Sachs citing a multi-year growth engine in AI.
TSMC's HPC revenue surged by 48% YoY, driven by AI and semiconductor demand.
Neutral/Negative Catalysts
2026/01/26 06:19:23
Apple plans to re-engage with Intel for iPhone chip supply starting in 2028, which could impact TSMC's future market share.
Slightly bearish sentiment in the options market with a high put-call ratio.
Financial Performance
In Q3 2025, TSMC delivered exceptional financial results: Revenue increased by 40.49% YoY to $33.08 billion, net income rose by 49.93% YoY to $15.11 billion, EPS grew by 48.72% YoY to 0.58, and gross margin improved to 59.45%, up 2.80% YoY. These results highlight strong growth and profitability.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Analysts are highly positive on TSMC. Barclays raised its price target to $450, citing strong Q4 results. TD Cowen raised its target to $370, highlighting manufacturing excellence. Citi and Goldman Sachs also raised targets, citing strong demand for advanced nodes and AI-driven growth. Overall, analysts maintain a bullish outlook on the stock.
Wall Street analysts forecast TSM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSM is 313.46 USD with a low forecast of 63.24 USD and a high forecast of 390 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.
8 Analyst Rating
Wall Street analysts forecast TSM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSM is 313.46 USD with a low forecast of 63.24 USD and a high forecast of 390 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.
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 338.340
Low
63.24
Averages
313.46
High
390
Current: 338.340
Low
63.24
Averages
313.46
High
390
Barclays
NULL -> Overweight
maintain
$380 -> $450
AI Analysis
2026-01-16
Reason
Barclays
Price Target
$380 -> $450
AI Analysis
2026-01-16
maintain
NULL -> Overweight
Reason
Barclays raised the firm's price target on TSMC to $450 from $380 and keeps an Overweight rating on the shares. The company's Q4 results were "strong across the board," the analyst tells investors in a research note.
TD Cowen
Hold
maintain
$325 -> $370
2026-01-16
Reason
TD Cowen
Price Target
$325 -> $370
2026-01-16
maintain
Hold
Reason
TD Cowen raised the firm's price target on TSMC to $370 from $325 and keeps a Hold rating on the shares. The firm updated its model following its better than expected quarterly results driven by manufacturing excellence. Its 2026 growth outlook is +30% year-over-year.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for TSM
