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TSMC, not Nvidia, is the key AI chip maker with a 16.9% upside and strong growth outlook.

Analyst Insights
09 Oct 2026
24/7 Wall Street
View Source
Bullish
TSMC, not Nvidia, is the key AI chip maker with a 16.9% upside and strong growth outlook.

Taiwan Semiconductor Manufacturing Company (TSMC) is crucial in AI chip production, as nearly all advanced chips, including Nvidia's, are made in its factories. TSMC's stock is currently priced at $472.36 with a 24/7 Wall St. price target of $552.36, indicating a potential 16.9% gain over the next year. The company reported strong revenue growth of 36% in Q2 and expects over 40% growth for the full year, supported by increased capital expenditure and demand projected through 2029-2030. Risks include margin pressure from new technology ramps, geopolitical tensions in Taiwan, and currency fluctuations, but TSMC's pricing power and market lead make it a compelling buy with a 90% confidence rating.

TSMC trades at USD 450.87 on Pluang as of Oct 09, 2026 23:11 WIB, down 1.55% for the day. The stock shows strong investor interest with 64% buy orders. Nvidia, closely linked to TSMC, trades at USD 229.64, down 0.36%, reflecting steady demand in the AI chip sector.

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