TSM Leads Semiconductor Sector with Top Performance: Analysts Predict Upside and Outperform Rating

Taiwan Semiconductor Manufacturing Company (TSM) leads the semiconductor industry with a high quant rating of 4.98, outperforming competitors like Micron Technology (MU) and Lam Research Corporation (LRCX). Analysts predict a potential upside of 9.94% with a one-year price target of $266.22, and major brokerage firms rate TSM as "Outperform."

Taiwan Semiconductor Manufacturing Company (TSM), the world's leading contract chipmaker, has initiated legal action against employees accused of leaking trade secrets related to its 2-nanometer (2-nm) chip technology. This incident underscores the company's commitment to safeguarding its core competitiveness and the interests of its employees [1].

TSMC confirmed that it has taken strict disciplinary actions against the involved personnel and has launched legal proceedings. The investigation is ongoing, and the case is currently under judicial review in Taiwan. The company has emphasized its dedication to maintaining its technological edge and protecting its proprietary information [2].

The 2-nm process is a cutting-edge semiconductor manufacturing technology that TSMC, Samsung Electronics, Intel, and Japan's Rapidus are among the few companies pursuing. This technology is considered highly complex and capital-intensive, and its successful development could significantly impact the global electronics supply chain [3].

Despite the ongoing investigation, TSMC's stock has gained nearly 22% this year, driven by strong demand for advanced, high-performance chips for artificial intelligence (AI) processes and systems. The company's leading-edge process technologies are expected to support its business growth [3].

Analysts predict a positive price trajectory with potential for significant upside, with 17 experts forecasting an average one-year price target of $264.38, representing a 10.62% potential upside from the current stock price of $239.00. The consensus among 20 brokerage firms rates TSM as "Outperform" [3].

Reference List:
[1] https://www.ainvest.com/news/tsm-sues-employees-trade-secret-breach-analysts-predict-positive-price-trajectory-2508/
[2] https://www.cnbc.com/2025/08/05/chipmaker-tsmc-says-it-has-discovered-potential-trade-secret-leaks.html
[3] https://menafn.com/1109885994/TSMC-Chip-Secrets-At-Risk-Apple-Nvidia-Supplier-Reportedly-Probes-Trade-Secret-Breach-As-Ex-Employees-Accused-Of-Data-Theft