---
title: "Everyone Says TSMC (TSM) Has Run Too Far. I Think They Are Wrong"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286914056.md"
description: "Despite a significant stock rally, TSMC's (TSM) stock remains attractive due to strong demand for advanced chips and favorable margins. The company's management indicates that the AI buildout is ongoing, supporting a reasonable valuation. Therefore, the outlook for TSM is bullish."
datetime: "2026-05-19T12:23:39.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286914056.md)
  - [en](https://longbridge.com/en/news/286914056.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286914056.md)
---

# Everyone Says TSMC (TSM) Has Run Too Far. I Think They Are Wrong

Taiwan Semiconductor Manufacturing Company Limited's (TSM) stock still looks attractive after its massive rally. That may sound hard to debate after such a huge run, but recent data has made it clear that the business is still benefiting from much larger forces than those of a typical semiconductor cycle.

### Claim 55% Off TipRanks

-   Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
-   Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks

Demand for advanced chips remains extremely strong, and margins of this contract chipmaker continue to reflect enormous operating leverage. At the same time, management's outlook suggests the artificial intelligence (AI) buildout still has a long way to run. That makes the valuation look reasonable even with the stock up so sharply from last year's levels. That is why I remain bullish on TSM today.

### Related Stocks

- [TSM.US](https://longbridge.com/en/quote/TSM.US.md)
- [SMH.US](https://longbridge.com/en/quote/SMH.US.md)
- [TSMG.US](https://longbridge.com/en/quote/TSMG.US.md)
- [TSMX.US](https://longbridge.com/en/quote/TSMX.US.md)
- [XSD.US](https://longbridge.com/en/quote/XSD.US.md)
- [TSMU.US](https://longbridge.com/en/quote/TSMU.US.md)
- [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md)

## Related News & Research

- [Taiwan Semiconductor Manufacturing Company Ltd. $TSM Stock Position Lifted by HighTower Advisors LLC](https://longbridge.com/en/news/286875739.md)
- [Two Creeks Capital Boosts Taiwan Semiconductor Stake by 86K](https://longbridge.com/en/news/286659331.md)
- [Hotchkis & Wiley trims Taiwan Semiconductor stake by 4,070 shares](https://longbridge.com/en/news/286659881.md)
- [Weitz Investment Management boosts TSMC stake with 20,000 shares](https://longbridge.com/en/news/286630768.md)
- [Allworth Financial LP Buys 2,117 Shares of Taiwan Semiconductor Manufacturing Company Ltd. $TSM](https://longbridge.com/en/news/286522631.md)