TSMC shares have gained 48% since the beginning of the year!

Taiwan Semiconductor Manufacturing Company (NYSE:TSM) stands out as one of the most impressive stocks that investors should pay attention to. The company's share price has seen an increase of nearly %48 since the beginning of the year, and analysts have a consensus that the stock could rise an additional %22.

Taiwan Semiconductor Manufacturing Company (NYSE:TSM) is at the center of semiconductor demand accelerated by artificial intelligence. According to a report published by Bloomberg on November 8, Nvidia CEO Jensen Huang stated that TSMC is critical to Nvidia's success and asked them to increase their supply to meet rising chip demands. Huang had this discussion with TSMC CEO C.C. Wei. Wei mentioned at the event that his company will continue to see record sales every year.

In recent days, Needham analyst Quinn Bolton emphasized the expansion potential of TSMC's 3nm FinFET (N3) capacity, stating that this could provide significant revenue growth. He also noted that Nvidia expects higher volumes from Rubin GPU in 2026 and has raised its growth and capital expenditure forecasts for 2026. Bolton has maintained the target price for the stock at $360.

As the world's largest private semiconductor factory, Taiwan Semiconductor Manufacturing Company (NYSE:TSM) produces advanced integrated circuits for global sectors such as technology, communications, and automotive.

While acknowledging TSMC's investment potential, we believe that some artificial intelligence stocks offer greater upside potential and carry less risk. If you are looking for an extremely undervalued artificial intelligence stock that could significantly benefit from Trump-era tariffs and the onshoring trend, you can check out our free report on the best short-term artificial intelligence stock.