Taiwan Semiconductor Just Reported Record Revenue. Should You Buy, Sell, or Hold TSM Stock Here?

Taiwan Semiconductor (TSM) stock popped on Friday after the company posted a record-breaking Q1, fueled by relentless demand for high-performance AI chips. 

TSM’s revenue jumped 35% to $35.6 billion, handily beating Street estimates. Even after the rally, the firm’s 14-day RSI sits in the low 60s, signaling that bullish momentum remains far from exhaustion. 

TSMC shares are proving a lucrative investment this month, now up nearly 17% versus their price on March 30. 

Options Pricing Remains Bullish on TSM Stock

For TSMC investors, the Q1 release is particularly significant because it signals the AI demand is defying slowdown fears despite macro risks, including the Iran war and the subsequently rebounding inflation. 

A remarkable 45% year-on-year sales increase in March alone confirms the appetite for advanced nodes is accelerating rather than tapering. 

As the primary manufacturer for industry titans like Nvidia and Apple, TSM stock is capturing the lion’s share of capital being poured into data centers.

The quarterly update feeds right into the bullish skew in options pricing. According to Barchart, the upper price on contracts expiring mid-July sits at about $431 currently, indicating another 16% upside from here. 

TSMC Seen Beating Its 30% Annual Growth Target

Sravan Kundojjala, a senior SemiAnalysis expert, expects TSM to “easily exceed” its 30% annual growth target. Kundojjala recommends owning TSMC stock for its ability to raise prices on its most cutting-edge chips without losing volume, which he believes will drive gross margins to a solid 64% in the first quarter. 

While the smartphone and PC markets face headwinds from memory shortages, TSMC’s artificial intelligence business seems to be doing the heavy lifting, he told CNBC in an emailed statement. 

A 0.94% dividend yield and a rather attractive 25x forward earnings multiple make this AI stock even more attractive for long-term investors in 2026. 

How Wall Street Recommends Playing TSMC Shares

Wall Street analysts share Kundojjala’s optimism on Taiwan Semiconductor Manufacturing as well.

According to Barchart, the consensus rating on TSM shares is currently a “Strong Buy," with the mean price target of about $419 indicating potential upside of roughly 14% from here.