Key Highlights Shares of TSM have skyrocketed 102.41% in the past twelve months, dramatically outperforming the S&P 500’s 25.39% return. First quarter 2026 revenue reached $35.90 billion, mar
Taiwan Semiconductor (TSM) has delivered extraordinary returns — climbing more than 100% over the past year — and market watchers believe there’s more upside ahead.
Taiwan Semiconductor Manufacturing Company Limited, TSM
Shares of TSM are currently changing hands near $462. The stock has climbed 24.27% in just the past three months and has doubled in value over the trailing year. By comparison, the broader S&P 500 index advanced only 25.39% during the same timeframe.
At least one analyst now suggests TSM has the potential to hit $500 per share, pointing to what they characterize as underappreciated earnings strength and a dominant position in cutting-edge chip production.
The Street’s consensus earnings forecast for fiscal year 2026 sits at $15.76 per share, implying a forward valuation multiple of approximately 29x. With the semiconductor sector’s median multiple hovering around 33x, some observers see opportunity for TSM’s valuation to expand.
A bullish perspective suggests actual earnings power may be closer to $18.48 for FY2026, which would place the stock at roughly 25x forward earnings — a more attractive valuation than headline figures indicate.
TSMC delivered first quarter 2026 revenue of $35.90 billion, representing a 35.1% jump from the year-ago period. High-Performance Computing applications contributed 61% of total revenue, while cutting-edge manufacturing processes at 3nm, 5nm, and 7nm nodes generated 74% of wafer revenue.
The 3nm process technology alone represented 25% of wafer revenue — highlighting where TSMC’s premium pricing capability resides.
Recent monthly figures support the growth trajectory. May revenue increased 30.1% versus the prior year. The five-month cumulative revenue expansion for 2026 stands at 30%.
TSMC has adjusted its full-year 2026 capital expenditure guidance toward the upper boundary of its $52 billion to $56 billion range. The chipmaker is scaling capacity to address substantial order volumes from major clients including Nvidia, Apple, and AMD.
Chief Executive C.C. Wei has stated that worldwide semiconductor supply will fall short of AI-related demand for the foreseeable future.
TSMC is expanding manufacturing operations with new fabrication facilities in Taiwan, Arizona, and Japan. The company is simultaneously advancing Chip-on-Panel-on-Substrate (CoPoS) packaging solutions designed for next-generation artificial intelligence processors.
TSM currently holds a Zacks Rank #2 (Buy) classification along with a Momentum Style Score of B. During the previous 60 days, two earnings projections for FY2026 were revised upward while none were lowered. The full-year consensus figure increased from $15.10 to $15.30 throughout that window.
Among Wall Street firms, TSM carries a Strong Buy consensus derived from five Buy recommendations and one Hold rating. Zero analysts currently assign it a Sell rating.
The mean price objective among these analysts stands at $465, suggesting modest upside of approximately 0.62% from present levels within the coming 12 months.
TSM’s weekly price movement shows a gain of 2.11%, in line with the Zacks Semiconductor – Circuit Foundry industry benchmark. The stock’s average 20-day trading volume registers around 11.6 million shares.
The post Taiwan Semiconductor (TSM) Stock: Why Bulls Are Eyeing a $500 Target appeared first on Blockonomi.
