TSMC Shares Surge on AI Chip Demand and Analyst Upgrades

Taiwan Semiconductor Manufacturing Company (TSMC) saw its U.S.-listed shares climb as much as 5% after CFRA Research upgraded the stock to buy, citing accelerating demand for AI processors. The firm now carries a $295 price target, up from $240 previously.

TSMC's pure-play foundry model continues to dominate the semiconductor landscape, commanding 70% of global market share. The company's latest financials reveal a striking growth trajectory—sales surged 54% year-over-year last quarter, building on prior gains of 30% and 36%.

Key clients like Nvidia, AMD and Broadcom are driving this expansion through advanced AI chip orders. Unlike integrated competitors Samsung and Intel, TSMC's specialized manufacturing approach allows it to capture premium pricing and technological leadership in cutting-edge nodes.