TSMC shares hit new 52-week high on $575 price target

Taiwan Semiconductor Manufacturing Co. ↗ 1.02% shares surged past their previous 52-week high on Monday as Susquehanna analyst Mehdi Hosseini raised his price target on the chipmaker to $575 from $500, maintaining a Positive rating on the stock. TSM climbed more than 2% in premarket trading to around $473.50, breaking through the prior 52-week high of $465.22.tipranks+2

AI Demand Fuels Optimism

Susquehanna's new price target represents the most aggressive published estimate among Wall Street analysts, reflecting growing confidence in TSMC's central role in the artificial intelligence chip supply chain. The upgrade comes as TSMC's CEO has warned that AI chip demand will continue to exceed supply for years ahead, with major hyperscalers projected to invest $725 billion this year to build out AI infrastructure.The Globe and Mail+1

Massive U.S. Expansion Underway

TSMC has committed to building 10 semiconductor fabrication facilities in the United States, representing a total investment of $265 billion. The expansion builds on a $65 billion initial commitment in Arizona, augmented by an additional $100 billion announced in March 2025 that brought the total to $165 billion, with further plans bringing the figure to its current level.Seoul Economic Daily+2

The company's first Arizona fab is already operational, achieving yields comparable to its top facilities in Taiwan. The second fab is complete with high-volume production expected in the second half of 2027, construction on a third has begun, and TSMC is applying for permits for a fourth plant. The investment has not been without friction — TSMC recently faced a U.S. patent lawsuit at the International Trade Commission, prompting debate in Washington over enforcement versus the company's strategic importance.cnbc.com+2

Broader Analyst Sentiment

While the mean analyst price target sits around $442.50, Susquehanna's $575 figure signals conviction that TSMC's dominance in advanced chip manufacturing positions it to capture outsize gains from AI spending. The stock has more than doubled from its 52-week low of roughly $206, reached in June 2025.wallstreetzen.com+2