By Vandita Jadeja
Publication Date: 2026-11-06 17:03:00
Every AI chip from Nvidia and Broadcom runs through one company’s fabs, yet that company trades at a fraction of the valuation its customers command. The gap raises a question worth answering before the market closes it.
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Every AI accelerator starts as a silicon wafer, and most of the world’s leading-edge wafers come from a single supplier. The 24/7 Wall St. price target for Taiwan Semiconductor Manufacturing (NYSE:TSM | TSM Price Prediction) is $516.16. That means 27.09% upside from $406.13, and the model rates TSMC a buy with high confidence.
24/7 Wall St. Price Target Summary
| Metric | Value |
|---|---|
| Current Price | $406.13 |
| Price Target from 24/7 Wall St. | $516.16 |
| Upside/Downside | 27.09% |
| Recommendation | BUY |
| Confidence Level | 90% |
AI demand still exceeds TSMC’s supply, earnings are growing faster than the valuation multiple, and the shares have pulled back from their highs. With 79% of wafer revenue coming from 7nm and below, TSMC controls the most valuable real estate in the AI supply chain.
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