TLDR
- TSM reached a new 52-week peak of $385.75 on February 24, 2026, advancing 4.25% during the trading session
- The upward momentum was fueled by AMD’s agreement to supply Meta with up to $100 billion in AI chips over five years
- TSMC produces the majority of AMD’s chips, so the deal translates to additional orders for TSMC’s manufacturing facilities
- January sales surged 37%, surpassing the company’s own full-year growth projection of approximately 30%
- TSM maintains a Strong Buy consensus on TipRanks, with an average price target of $410.14
Taiwan Semiconductor Manufacturing (TSM) hit a new 52-week high of $385.75 on Tuesday, February 24, 2026, climbing 4.25% in a single session. The stock had closed at $370.00 the prior day. Year-to-date, TSM has gained 27%.
This rise followed AMD’s announcement of a deal to supply Meta Platforms with AI chips valued at up to $100 billion over the next five years.
This agreement is significant for TSMC, as it manufactures the bulk of AMD’s chips. Greater orders for AMD mean increased activity on TSMC’s production lines in Taiwan, Japan, and the U.S.
TSMC shares listed in Taiwan also rose 3.28% during Tuesday’s session, reflecting widespread investor optimism.
TSM now has a market capitalization of $2.0 trillion. The stock has appreciated by more than 170% over the past five years.
Why the AMD-Meta Deal Makes an Impact
TSMC holds roughly 70% of the global chip foundry market. It is among a select few companies capable of mass-producing advanced 5-nanometer and 2-nanometer chips at scale.
This manufacturing advantage has positioned TSMC at the heart of the AI expansion. Its largest clients—Nvidia, Apple, AMD, Broadcom, and Google—are all ramping up AI investments.
CEO C.C. Wei stated during the Q4 2025 earnings call that he anticipates 25% compound annual revenue growth over the long term.
In Q4 2025, TSMC reported 20.5% year-over-year revenue growth. Gross profit increased by 27.2%, and earnings per share rose by 35%.
For Q1 2026, the company expects to generate around $35 billion in revenue.
January sales were 37% higher year-over-year, already exceeding the company’s own full-year growth forecast of roughly 30%.
Focus on Nvidia’s Earnings
Beyond the AMD-Meta deal, investors are monitoring Nvidia’s Q4 earnings report, scheduled for Wednesday, February 25. Nvidia is TSMC’s largest individual customer.
Strong guidance from Nvidia would likely indicate sustained high demand for TSMC’s most advanced chip manufacturing processes.
Risks remain a concern. Geopolitical tensions surrounding Taiwan, substantial capital expenditure plans exceeding $56 billion in 2026, and global trade uncertainties are all factors investors are tracking.
Approximately 75% of TSMC’s revenue originates from North America, making it vulnerable to any slowdown in U.S. AI spending.
To mitigate concentration risk, TSMC is expanding production to the U.S., Germany, and Japan.
In terms of valuation, TSM trades at a forward P/E ratio of about 25 and a PEG ratio of around 1.5. TipRanks analysts have a Strong Buy consensus for TSM, based on eight Buy ratings and one Hold over the past three months.
The average analyst price target stands at $410.14, suggesting approximately 6.32% upside from the February 24 closing price.
TSM’s 52-week range is $134.25 to $389.18, with Tuesday’s high of $389.18 marking the upper end of this range.
