Key Takeaways
- Shares of TSM reached a 52-week peak of $385.75 during trading on February 24, 2026, climbing 4.25%
- AMD’s announcement of a potential $100 billion AI chip supply agreement with Meta over five years sparked the rally
- As AMD’s primary chip manufacturer, TSMC stands to benefit significantly from increased production orders
- Monthly revenue for January surged 37% year-over-year, exceeding the company’s annual growth projection of approximately 30%
- Wall Street analysts give TSM a Strong Buy rating with a consensus price target of $410.14
Shares of Taiwan Semiconductor Manufacturing (TSM) climbed to a new 52-week peak of $385.75 during Tuesday’s trading session on February 24, 2026, posting an impressive 4.25% single-day gain. The semiconductor giant closed the previous session at $370.00. So far in 2026, the stock has appreciated 27%.
Taiwan Semiconductor Manufacturing Company Limited, TSM
The upward momentum followed AMD’s announcement of a landmark agreement to deliver up to $100 billion in AI semiconductor products to Meta Platforms across the coming five-year period.
This development carries significant implications for TSMC, which serves as the primary manufacturer for AMD’s chip portfolio. Increased demand for AMD products translates directly into higher utilization rates across TSMC’s manufacturing facilities spanning Taiwan, Japan, and the United States.
The Taiwan-listed shares of TSMC also climbed 3.28% during Tuesday’s trading, demonstrating widespread investor confidence in the chipmaker’s prospects.
TSM now commands a market capitalization of $2.0 trillion. Over the past five years, the stock has delivered returns exceeding 170%.
The Strategic Significance of AMD’s Meta Partnership
TSMC commands approximately 70% of the worldwide chip foundry marketplace. The company represents one of only a select few manufacturers with the capability to produce cutting-edge 5-nanometer and 2-nanometer semiconductors at commercial scale.
This technological advantage has positioned TSMC as a critical enabler of the ongoing AI infrastructure expansion. Key clients including Nvidia, Apple, AMD, Broadcom, and Google are all accelerating their AI-related capital investments.
During the Q4 2025 earnings call, CEO C.C. Wei projected sustained compound annual revenue expansion of 25% over the long term.
During the fourth quarter of 2025, TSMC delivered 20.5% revenue growth compared to the prior year. Gross margins expanded 27.2%, while earnings per share jumped 35%.
Looking ahead to Q1 2026, management forecasts approximately $35 billion in quarterly revenue.
January’s monthly sales figures showed a remarkable 37% year-over-year increase, already surpassing the company’s full-year growth estimate of around 30%.
Market Anticipation Around Nvidia’s Financial Results
Apart from the AMD-Meta announcement, market participants are closely monitoring Nvidia’s fourth-quarter financial report, set for release on Wednesday, February 25. Nvidia represents TSMC’s most significant individual customer.
Robust forward guidance from Nvidia would likely indicate sustained strong demand for TSMC’s most sophisticated manufacturing processes.
Several risk factors warrant attention. Geopolitical dynamics surrounding Taiwan, substantial capital investment commitments exceeding $56 billion in 2026, and global trade policy uncertainty remain on investors’ radar.
Approximately 75% of TSMC’s total revenue originates from North American customers, creating exposure to potential deceleration in U.S. AI infrastructure spending.
To mitigate geographic concentration risks, TSMC continues expanding manufacturing capacity across the United States, Germany, and Japan.
From a valuation perspective, TSM currently trades at a forward price-to-earnings multiple of approximately 25 and a PEG ratio near 1.5. TipRanks analysts maintain a Strong Buy consensus rating on TSM, supported by eight Buy recommendations and one Hold rating issued over the most recent three-month period.
The consensus analyst price target stands at $410.14, suggesting potential upside of roughly 6.32% from the February 24 closing price.
TSM’s 52-week trading range spans from $134.25 to $389.18, with Tuesday’s intraday high of $389.18 establishing the upper boundary of that range.
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