AI Predicts TSMC Stock Price by Year-End: A Detailed Analysis

TSMC's Remarkable Q3 Performance

Taiwan Semiconductor Manufacturing Company (NYSE: TSM), the world’s largest contract chipmaker, continues to make waves in the semiconductor industry with its remarkable performance in the third quarter of 2024. The company reported a year-over-year profit surge of 54%, further cementing its leadership in the global market. Currently trading at $201.4, with a 6% gain over the last five days, TSMC’s robust earnings and strategic partnerships are fueling its rise.

Revenue Surplus and Technological Edge

In Q3 2024, TSMC reported revenue of $23.5 billion, surpassing expectations of $23.31 billion. This strong performance was primarily driven by high demand for its 3-nanometer and 5-nanometer chip technologies, which power smartphones, high-performance computing, and AI applications. Notably, advanced chip technologies (7nm and smaller) accounted for 69% of the company’s wafer revenue, showcasing TSMC’s technological edge.

• Wendell Huang, Senior VP and CFO: "Our business in the third quarter was supported by strong smartphone and AI-related demand for our industry-leading 3nm and 5nm technologies."

Strategic Expansion and Investments

TSMC’s expansion into new markets, including its first factory in Japan and a $65 billion investment in Arizona, is set to boost its long-term growth. The company is also starting a new factory in Dresden, Germany, further solidifying its global presence. This expansion is indeed driven by the skyrocketing demand for semiconductors, fueled by the ongoing AI boom.

Geopolitical Risks and Analyst Forecasts

However, geopolitical tensions around Taiwan pose a significant risk to TSMC. Analysts remain optimistic about TSMC’s prospects, maintaining a consensus "Strong Buy" rating with an average price target of $211.25, indicating a potential upside. Analysts have set even higher targets, reflecting confidence in TSMC’s fundamentals amidst external risks.

AI Prediction for TSMC Stock Price

Finbold consulted OpenAI’s advanced AI tool to predict TSMC’s future stock performance. Based on TSMC's impressive Q3 results and ongoing expansion plans, the AI predicts a potential rise in TSMC’s stock to $220 by year-end, provided external risks remain manageable.