Taiwan Semiconductor (TSM) Stock Hits 52-Week High on AMD-Meta Deal

TLDR

• TSM hit a new 52-week high of $385.75 on February 24, 2026, gaining 4.25% in the session
• The rally was driven by AMD’s deal to supply Meta with up to $100 billion in AI chips over five years
• TSMC manufactures most of AMD’s chips, so the deal means more orders for TSMC’s factories
• January sales jumped 37%, beating the company’s own full-year forecast of ~30% growth
• TSM holds a Strong Buy consensus on TipRanks with an average price target of $410.14

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Taiwan Semiconductor Manufacturing (TSM) hit a fresh 52-week high of $385.75 on Tuesday, February 24, 2026, rising 4.25% in a single session. The stock had closed at $370.00 the day before. Year-to-date, TSM is up 27%.

Taiwan Semiconductor Manufacturing Company Limited, TSM

The move came after AMD announced a deal to supply Meta Platforms with up to $100 billion worth of AI chips over the next five years.

That deal matters for TSMC because it makes the bulk of AMD’s chips. More orders for AMD means more work on TSMC’s production lines in Taiwan, Japan, and the U.S.

Taiwan-listed TSMC stock also rose 3.28% in Tuesday’s session, reflecting broad investor enthusiasm.

TSM now carries a market cap of $2.0 trillion. The stock has gained more than 170% over the past five years.

Why the AMD-Meta Deal Moves the Needle

TSMC holds roughly 70% of the global chip foundry market. It is one of only a handful of companies capable of mass-producing advanced 5-nanometer and 2-nanometer chips at scale.

That manufacturing edge has put TSMC at the center of the AI buildout. Its biggest customers — Nvidia, Apple, AMD, Broadcom, and Google — are all ramping AI spending.

CEO C.C. Wei said on the Q4 2025 earnings call that he expects 25% compound annual revenue growth over the long term.

In Q4 2025, TSMC posted 20.5% year-over-year revenue growth. Gross profit rose 27.2%, and earnings per share climbed 35%.

For Q1 2026, the company expects to pull in around $35 billion in revenue.

January sales came in 37% higher year-over-year, already outpacing the company’s own full-year forecast of roughly 30% growth.

Eyes on Nvidia’s Earnings

Beyond the AMD-Meta deal, investors are watching Nvidia’s Q4 earnings report, scheduled for Wednesday, February 25. Nvidia is TSMC’s largest single customer.

Strong Nvidia guidance would likely signal continued high demand for TSMC’s most advanced chip processes.

Risks remain on the table. Geopolitical tension around Taiwan, heavy capital expenditure plans of over $56 billion in 2026, and global trade uncertainty are all factors investors are tracking.

About 75% of TSMC’s revenue comes from North America, making it sensitive to any slowdown in U.S. AI spending.

To reduce concentration risk, TSMC is expanding production to the U.S., Germany, and Japan.

On valuation, TSM trades at a forward P/E of roughly 25 and a PEG ratio of around 1.5. Analysts at TipRanks assign TSM a Strong Buy consensus, based on eight Buy ratings and one Hold over the past three months.

The average analyst price target sits at $410.14, implying around 6.32% upside from the February 24 closing price.

The 52-week range for TSM is $134.25 to $389.18, with Tuesday’s high of $389.18 marking the top of that range.

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