TSMC's Soaring Stock Raises Concerns Despite Global Expansion and AI Growth

Taiwan Semiconductor Manufacturing Co.'s stock has surged over 110% since October 2022, driven by investor enthusiasm for AI-related revenue growth, but concerns about sustainability and geopolitical tensions linger. Analysts caution that the rally may have gone too far, too fast, with the stock's relative strength index in overbought territory and a record premium over the average analyst price target. While optimistic about TSMC's future, analysts express nervousness over the longevity of AI demand and potential risks from geopolitical uncertainties and Apple's smartphone industry downturn. Despite these concerns, TSMC's stock remains highly rated, with 35 buy ratings and just one hold recommendation.