Key Highlights
- TSM reached a fresh 52-week peak of $385.75 on February 24, 2026, climbing 4.25% during trading
- The surge followed AMD’s announcement of a massive deal to deliver Meta up to $100 billion in AI processors across five years
- As AMD’s primary chip manufacturer, TSMC stands to benefit significantly from increased production orders
- The company’s January revenue soared 37%, surpassing its own projected annual growth rate of approximately 30%
- Analysts on TipRanks rate TSM as a Strong Buy with a consensus price target of $410.14
Taiwan Semiconductor Manufacturing (TSM) reached a new 52-week peak of $385.75 during Tuesday’s trading session on February 24, 2026, posting a robust 4.25% gain. The semiconductor giant closed the previous day at $370.00. So far in 2026, TSM has climbed 27%.
Taiwan Semiconductor Manufacturing Company Limited, TSM
The impressive rally followed AMD’s announcement of a landmark agreement to provide Meta Platforms with AI chips valued at up to $100 billion throughout the next five years.
This partnership holds substantial implications for TSMC since it serves as the primary manufacturer for AMD’s semiconductor products. Increased demand for AMD translates directly into higher production volumes across TSMC’s manufacturing facilities spanning Taiwan, Japan, and the United States.
Shares of TSMC trading on the Taiwan exchange also climbed 3.28% during Tuesday’s session, demonstrating widespread investor confidence.
TSM now commands a market capitalization of $2.0 trillion. Over the previous five-year period, the stock has surged more than 170%.
The Significance of the AMD-Meta Partnership
TSMC controls approximately 70% of the worldwide chip foundry market. It ranks among the select few companies with the capability to manufacture cutting-edge 5-nanometer and 2-nanometer chips in large volumes.
This technological superiority has positioned TSMC as a critical player in the expanding AI infrastructure landscape. Its primary clients — including Nvidia, Apple, AMD, Broadcom, and Google — are all accelerating their AI-related investments.
CEO C.C. Wei indicated during the Q4 2025 earnings discussion that the company anticipates 25% compound annual revenue expansion over the extended term.
During Q4 2025, TSMC delivered 20.5% year-over-year revenue expansion. Gross profit increased 27.2%, while earnings per share jumped 35%.
Looking ahead to Q1 2026, management projects approximately $35 billion in revenue.
January’s sales figures showed a 37% year-over-year increase, already exceeding the company’s projected annual growth rate of approximately 30%.
Anticipation Builds for Nvidia’s Results
Apart from the AMD-Meta partnership, market participants are closely monitoring Nvidia’s Q4 earnings release, set for Wednesday, February 25. Nvidia represents TSMC’s biggest individual client.
Positive guidance from Nvidia would likely indicate sustained robust demand for TSMC’s most sophisticated chip manufacturing capabilities.
Challenges persist, however. Geopolitical instability surrounding Taiwan, substantial capital investment plans exceeding $56 billion for 2026, and worldwide trade uncertainties remain important considerations for investors.
Approximately 75% of TSMC’s revenue originates from North American customers, creating vulnerability to any deceleration in U.S. AI infrastructure spending.
To mitigate geographic concentration risk, TSMC is broadening its manufacturing footprint across the United States, Germany, and Japan.
From a valuation perspective, TSM currently trades at a forward P/E ratio of approximately 25 and a PEG ratio near 1.5. TipRanks analysts give TSM a Strong Buy consensus rating, reflecting eight Buy recommendations and one Hold rating issued over the last three months.
The consensus analyst price target stands at $410.14, suggesting approximately 6.32% potential upside from the February 24 closing price.
TSM’s 52-week trading range spans from $134.25 to $389.18, with Tuesday’s peak of $389.18 representing the upper boundary of that range.
