TSMC Stock (TSM): Top Bernstein Analyst Turns Up the Heat on This AI Chipmaker

FomoAnxiety

2026-03-16 15:43:31

Abstract generation in progress

Taiwan Semiconductor Manufacturing Company TSM +1.24% ▲ , the world’s leading chip foundry, continues to ride the powerful wave of artificial intelligence demand. According to top Bernstein analyst Mark Li, that momentum is only getting stronger. Li reiterated an Outperform rating on the stock and raised his price target to $351 from $330, citing growing demand for AI chips and expanding opportunities tied to the global AI buildout.

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AI Demand Continues to Power Growth

Li said AI is now the biggest growth driver for TSMC. Demand for AI processors continues to exceed the company’s production capacity, especially for XPU chips, which are widely used in AI data centers.

The analyst also pointed to high-bandwidth memory (HBM) base dies as another key AI revenue driver. Companies such as SK Hynix, Micron Technology MU +5.17% ▲ , and Nvidia NVDA +2.46% ▲ are increasingly asking TSMC to manufacture these components for their AI systems.

Because of this strong demand, Li expects AI-related revenue to rise from about 18% of TSMC’s total sales last year to the low-to-mid-20% range this year.

Capacity Expansion to Meet Rising Demand

To support this growth, TSMC is expected to expand its advanced packaging capacity, especially for CoWoS technology, which is widely used for AI chips.

While outsourced semiconductor assembly and test companies are also adding capacity, Li said wafer production will remain concentrated at TSMC, helping drive further revenue growth.

Overall, the analyst believes the continued expansion of AI computing will support TSMC’s growth in the years ahead.

Is TSMC a Good Stock to Buy?

Taiwan Semiconductor stock has a consensus Strong Buy rating among eight Wall Street analysts. That rating is based on seven Buy and one Hold recommendations assigned in the last three months. The average TSMC price target of $423.50 implies 23.62% upside from current levels.

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