TSM
New price target, same old flex
Taiwan Semiconductor is doing that annoying thing great companies do: proving the hype wasn’t hype. Bernstein SocGen Group raised its price target on TSM to $430 from $351 and kept the stock at Outperform, arguing the chip giant is the “most trustworthy AI compounder.”
That’s analyst-speak for: if AI is the party, TSM is the company selling the coolers, the cups, and probably half the music rights.
Why investors should care
Bernstein’s call is built on a pretty bullish thesis:
- It expects roughly 28% EPS CAGR over the next 2.5 years.
- It says TSM is already mass-producing “true 2nm” chips.
- Demand is apparently not the issue — capacity is.
That last part matters. When a chipmaker is constrained by how much it can make rather than how much customers want, you’re looking at a business with real pricing power and a pretty enviable moat.
Intel gets name-checked, but the spotlight stays on TSM
Intel shows up in the article as a rival, mostly as a reminder that TSM’s technological lead still looks chunky. Bernstein’s argument is basically that TSM’s AI edge is not just a story stock pitch — it’s backed by process leadership and scale.
And the market seems to be buying it. TSM’s momentum score just jumped higher, pushing its relative strength into the top 10% of stocks. That’s the kind of technical follow-through traders love when the fundamentals are already doing the moonwalk.
Big picture
TSM is starting to look less like a cyclical chip name and more like a toll booth on the AI superhighway. If Bernstein is right, this isn’t just about another price-target bump — it’s a sign that investors may still be underestimating how long TSM can keep compounding while everyone else is scrambling for wafers.