Strong

Momentum

Score

<h3 id="key-highlights">Key Highlights</h3>
<ul>
 <li>Shares of TSM have skyrocketed 102.41% in the past twelve months, dramatically outperforming the S&amp;P 500’s 25.39% return.</li>
 <li>First quarter 2026 revenue reached $35.90 billion, marking a 35.1% increase compared to the prior year, driven by High-Performance Computing at 61% of sales.</li>
 <li>Monthly revenue for May climbed 30.1% year-over-year, maintaining a consistent 30% growth rate across the first five months.</li>
 <li>Analysts project FY2026 earnings per share at $15.76, placing TSM at approximately $462 with a forward price-to-earnings multiple near 29x.</li>
 <li>The company carries a Zacks Rank #2 (Buy) alongside a Momentum Style Score of B; Wall Street consensus shows Strong Buy with an average target of $465.</li>
</ul>
<p>Taiwan Semiconductor (TSM) has delivered extraordinary returns — climbing more than 100% over the past year — and market watchers believe there’s more upside ahead.</p>
<p><a href="https://knockoutstocks.com/stock/TSM" rel="noopener noreferrer nofollow"><br><img src="https://knockoutstocks.com/api/stocks/TSM/embed" alt="TSM Stock Card"><br> Taiwan Semiconductor Manufacturing Company Limited, TSM<br></a></p>
<p>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&amp;P 500 index advanced only 25.39% during the same timeframe.</p>
<p>At least one analyst now suggests <a href="https://coincentral.com/tsmc-capacity-crunch-why-google-is-in-talks-with-samsung-for-ai-chip-production/" rel="noopener noreferrer nofollow">TSM</a> 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.</p>
<p>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.</p>
<p>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.</p>
<h3 id="consistent-top-line-momentum">Consistent Top-Line Momentum</h3>
<p>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.</p>
<p>The 3nm process technology alone represented 25% of wafer revenue — highlighting where TSMC’s premium pricing capability resides.</p>
<p>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%.</p>
<p><a href="https://coincentral.com/nvidia-broadcom-and-tsmc-the-best-semiconductor-stocks-to-watch-in-2026/" rel="noopener noreferrer nofollow">TSMC</a> 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.</p>
<h3 id="the-path-to-500-per-share">The Path to $500 Per Share</h3>
<p>Chief Executive C.C. Wei has stated that worldwide semiconductor supply will fall short of AI-related demand for the foreseeable future.</p>
<p>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.</p>
<h3 id="what-analysts-are-saying">What Analysts Are Saying</h3>
<p>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.</p>
<p><strong>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.</strong></p>
<p>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.</p>
<p>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.</p>
<p>The post <a href="https://blockonomi.com/taiwan-semiconductor-tsm-stock-why-bulls-are-eyeing-a-500-target/" rel="noopener noreferrer nofollow">Taiwan Semiconductor (TSM) Stock: Why Bulls Are Eyeing a $500 Target</a> appeared first on <a href="https://blockonomi.com" rel="noopener noreferrer nofollow">Blockonomi</a>.</p>

Taiwan Semiconductor (TSM) Stock: Why Bulls Are Eyeing a $500 Target

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