TSMC(US:TSM) The Motley Fool·2026-01-25 06:45Group 1: Company Performance and Expectations - Taiwan Semiconductor Manufacturing (TSMC) is expected to gain about 25% this year, following a solid performance with a 54% increase in 2025 [1] - The average consensus target price for TSMC is $408.50, indicating a potential 25% increase over the next 12 to 18 months [1] - TSMC's stock has gained 54% over the past year while maintaining a P/E ratio of 31, which is attractive given its growth opportunities [8] Group 2: Industry Position and Demand - TSMC is a leading foundry that manufactures semiconductors essential for various technologies, including smartphones, autonomous vehicles, and artificial intelligence (AI) [2] - Major companies like Amazon, Meta Platforms, and Alphabet are planning to increase their AI spending, which collectively amounts to several hundred billion dollars [3] - TSMC is raising its capital expenditure to meet the increasing demand for semiconductors, with management guiding for a 30% sales increase in 2026 [3] Group 3: Financial Metrics and Projections - Wall Street expects TSMC's earnings per share (EPS) to rise to $13.05 in 2026, a 23% increase from $10.65 in 2025, alongside a 31% increase in sales [10] - The highest price target for TSMC stock is $520, representing a 59% increase from the current price, with a strong likelihood of reaching this target within the next 12 to 18 months [11]