TSMC Draws Analyst Price Target Updates After Blowout Q4 Results — Retail Says AI Bubble Narrative Shattered

• BofA raised its price target on TSMC to $470 from $430 while maintaining a ‘Buy’ rating.
• Needham revised its price target to $410 from $360 on the company while maintaining a ‘Buy’ rating on the stock.
• Shares of other semiconductor companies, including Nvidia, Micron Technologies, and Advanced Micro Devices, also climbed higher on Thursday.

Taiwan Semiconductor Manufacturing Co. (TSM) received a series of analyst price target updates after the semiconductor company posted blowout fourth-quarter (Q4) results that clocked a 35% surge in profit.

Bank of America (BAC) raised its price target on the company to $470 from $430 while maintaining a ‘Buy’ rating, according to TheFly.

Meanwhile, Needham also revised its price target on TSMC to $410 from $360 while maintaining a ‘Buy’ rating on the stock, according to Investing.com.

TSMC also garnered significant retail interest, becoming among the top trending stocks on Stocktwits.

Shares of TSM rose over 7% on Thursday at the time of writing.

Analyst Optimism

BofA cited TSMC raising its artificial intelligence (AI) total addressable market forecast on the hyperscalers' AI commitment, lifting its sales growth guidance close to 30% year-over-year and 2024-2029 compound annual growth rate to about 25% from close to 20% prior guidance.

In its earnings update, TSMC said it will increase its 2026 capital expenditure by 37% to $56 billion, due to soaring demand for its manufacturing services. BofA expects a further leg up to $58 billion in 2027.

Meanwhile, TSMC’s projected 2026 revenue growth nearing 30% is higher than the approximately 25% that Needham had previously modeled, while its capex also beat Needham’s prior estimate of $50 billion.

What Are Stocktwits Users Saying?

On Stocktwits, retail sentiment around TSM stock jumped to ‘extremely bullish’ from ‘bullish’ a day ago while message volume increased to ‘extremely high’ from ‘high’ levels.

One bullish user said the company’s earnings report has boosted the entire chip and semiconductor industry, adding that the AI bubble narrative is being shattered after the results.

Shares of American rival Nvidia Corp. (NVDA) rose 3% on Thursday, while shares of Micron Technology Inc. (MU) climbed over 2.7% at the time of writing. Advanced Micro Devices Inc. (AMD) stock was up over 5.7%. The iShares Semiconductor ETF (SOXX), which tracks U.S.-listed semiconductor stocks, climbed 3.4% at the time of writing.

Another user commented that earnings reset AI supply expectations, validating long-term capex visibility across the sector.

A third user said that no other semiconductor company could challenge TSMC, while providing a price expectation that would double in the next three years.

Shares of TSM have gained over 68% in the past year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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