The AI Chip Revolution Wouldn’t Be Possible Without This Company

• TSMC rated BUY with a $531.86 price target, implying about 16.5% upside, per 24/7 Wall St. • TSMC trades at just 22x forward earnings, cheaper than NVIDIA, Intel, and ASML. • Bull case targets $620 on 2nm ramp; bear case $444 on margin and Taiwan risk. 24/7 Wall St. rates Taiwan Semiconductor Manufacturing (NYSE:TSM) a BUY with a $531.86 price target (90% confidence), implying 16.5% upside from $456.41. TSMC supplies chips for nearly every major AI accelerator; high-performance computing rose 20% quarter-over-quarter to 66% of Q2 revenue. Management raised 2026 revenue growth guidance to above 40% in USD terms, and net income grew 77.4%, yet shares trade at just 22x forward earnings. Shares are up 51% year-to-date, about 4.5% below their 52-week high. Q2 EPS of $4.31 beat estimates, revenue rose 36% to $40.2 billion, and 2nm production began at 3% of wafer revenue. TSMC raised its planned Arizona investment to $265 billion. The bull case ($620.74, +36%) rests on the 2nm ramp and tight advanced-packaging capacity, with a Street consensus target of $552.26. The bear case ($443.67, -2.8%) cites margin dilution from the 2nm ramp and overseas fabs, plus Taiwan-China tensions and U.S. export controls. TSMC's 22x forward P/E is cheaper than NVIDIA (25x, 106% revenue growth), Intel (63x, -$2.09 trailing EPS), and ASML (29x, 21% growth) — despite TSMC's own 36% growth, reinforcing the bullish valuation case.