Strong Analyst Sentiment on Taiwan Semiconductor Manufacturing (TSM) As AI Demand Drives Massive 2026 Capital Spending

Core Insights - Taiwan Semiconductor Manufacturing Company Limited (TSM) is recognized as one of the 13 best extremely profitable stocks to invest in currently [1] Analyst Sentiment - TSM maintains a bullish analyst sentiment with a consensus price target of $410, indicating an upside potential of 24.03% after a stock surge of 40.54% over the past six months and over 10% in 2026 [3] - TD Cowen raised its price target for TSM to $370 from $325 while maintaining a 'Hold' rating, citing strong production execution and better-than-expected quarterly results [5] - Morgan Stanley increased its target by 5% to NT$2,088, highlighting strong gross margins and rising demand for AI [6] - Barclays set a target of $450 with an 'Overweight' rating, describing the fourth-quarter results as strong across all areas [6] Capital Spending and Revenue Growth - TSM plans to increase capital spending to $52–$56 billion in 2026, representing at least a 25% increase compared to 2025, driven by AI demand [4] - Revenue growth for TSM is projected to reach approximately 30%, surpassing average analyst expectations [4] Company Overview - TSM manufactures advanced integrated circuits and semiconductors for various sectors, including AI, computing, communications, automotive, and consumer electronics globally [7]