Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE: TSM) is doubling down on the artificial intelligence semiconductor boom as surging demand pushes the chipmaker to expand manufacturing and advanced-packaging capacity worldwide.

The company is considering a new manufacturing campus in Texas that could involve tens of billions of dollars in investment and multiple fabrication plants, Bloomberg reported Thursday.

Each potential fab could cost at least $20 billion. However, discussions remain at an early stage.

The stock also received support after Elon Musk confirmed early-stage talks with Taiwan Semiconductor about a possible role in his planned Texas-based Terafab semiconductor project.

Taiwan Semiconductor shares have gained almost 60% in 2026 as global AI infrastructure spending drives demand for its advanced chips and contract manufacturing services.

The stock is trading nearly 2% higher in Monday's premarket session as it extends its longer-term uptrend and pushes into breakout territory. Nasdaq futures are down 0.11%, while S&P 500 futures have slipped 0.04%.

TSM is also pushing above its previous 52-week high. A breakout into new-high territory can attract momentum traders as investors look for the uptrend to continue.

AI Demand Pushes Taiwan Semiconductor To Add Capacity

North American customers generate more than 75% of Taiwan Semiconductor's wafer revenue. NVIDIA Corp. (NASDAQ: NVDA) and Advanced Micro Devices Inc. (NASDAQ: AMD) are among the companies placing large orders for advanced manufacturing.

Deputy Co-Chief Operating Officer Cliff Hou said Taiwan Semiconductor has roughly doubled its planned equipment purchases over the past year to keep pace with demand.

The company has already committed $265 billion to its Arizona operations. It is also pursuing projects in Japan and Germany while holding discussions with Singapore officials.

Counterpoint Calls Taiwan Semiconductor AI's 'Central Beneficiary'

Counterpoint Research sees Taiwan Semiconductor as the biggest beneficiary of the AI semiconductor boom.

Taiwan Semiconductor's second-quarter revenue rose 34% year over year and 12% sequentially to $40.2 billion. Its share of the Foundry 2.0 market increased to roughly 42% from 38% in 2025.

Counterpoint expects full-year 2026 revenue to grow about 43%, with growth approaching 50% in the second half. Associate Director Brady Wang called Taiwan Semiconductor the "central beneficiary" of expanding AI investment.

S&P Says Taiwan Semiconductor Could Weather An AI Slowdown

Meanwhile, S&P Global Ratings expects hyperscaler AI spending to reach $1.5 trillion by 2028 and sees Taiwan Semiconductor as relatively resilient if spending slows.

S&P said Taiwan Semiconductor's technology leadership and diversified end markets should help protect pricing and margins.

The ratings firm expects profitability and cash generation to remain above 2026 levels even under a weaker AI spending scenario.

The potential Texas investment partly depends on an extension of a 35% U.S. advanced-manufacturing tax credit that is set to expire at the end of 2026.

Despite expanding overseas, Taiwan Semiconductor plans to keep development of its most advanced chipmaking technology in Taiwan.

Taiwan Semiconductor said, "We have no comment on market rumors."

Earnings And Analyst Outlook

Taiwan Semiconductor is scheduled to report earnings on Oct. 15.

Wall Street expects earnings of $4.45 per share, up from $2.92 a year earlier. Revenue is expected to reach $45.54 billion, compared with $33.10 billion in the year-ago period.

The stock trades at a price-to-earnings ratio of about 35.3, reflecting a premium valuation.

TSM carries a Buy consensus rating with an average price forecast of $547.38. Recent analyst actions include:

• Stifel: Initiated coverage with a Buy rating and $515 price forecast on Sept. 2.
• Bernstein: Maintained an Outperform rating and raised its price forecast to $554 on Aug. 11.
• Needham: Maintained a Buy rating and raised its price forecast to $530 on July 27.

TSM Price Action: Taiwan Semiconductor shares were up 1.66% at $480.62 during premarket trading on Monday. The stock is trading at a new 52-week high, according to market data.