Bernstein Confirms TSM's Outperform Rating as Revenue Continues to Exceed Expectations

Taiwan Semiconductor Manufacturing Company (NYSE:TSM) continues to draw attention as a key player in the AI sector. On December 10, Bernstein reaffirmed its "Outperform" rating for the company, setting a target price of $330. The analysts have a positive outlook on TSMC, noting that its revenue for Q4 2025 is currently tracking ahead of both guidance and consensus estimates.

According to Bernstein's analysis, TSMC's sales for November reached NT$343.61 billion (approximately $11 billion), marking a 6.5% decrease from October's NT$367.47 billion. However, this still represents a 24.5% increase compared to the same month last year.

When combining October and November revenues, TSMC reported NT$711 billion, which represents 71% of the company's midpoint revenue guidance for Q4 2025, when calculated in New Taiwan dollars. This places the company at the higher end of its historical performance range of 65-72%.

Bernstein further noted that if December follows typical seasonal trends, the companys Q4 revenue could exceed the guidance midpoint and consensus by 3-4%. Additionally, favorable foreign exchange rates have provided a modest 1% boost to the company's revenue, though this alone doesn't account for the overall outperformance.

TSMC remains a significant supplier of advanced semiconductor chips used in AI technologies. While the companys prospects are promising, some analysts believe there are other AI stocks with potentially higher upside and less risk. For those seeking undervalued AI stocks, there are alternative opportunities with strong growth potential, particularly those positioned to benefit from current geopolitical trends, such as tariffs and reshoring of production.

Sources:

• Bernstein Reiterates Outperform on TSM as Revenue Tracks Ahead of Guidance

Author: Grace Ellison
Grace Ellison is a journalist focusing on environmental issues and sustainability. She has experience publishing international reports and participating in documentary projects.