Taiwan Semiconductor Manufacturing (NYSE:TSM | TSM Price Prediction | TSM Price Prediction) is the operating system behind the AI buildout. Every leading-edge accelerator from NVIDIA (NASDAQ:NVDA), AMD (NASDAQ:AMD), Broadcom (NASDAQ:AVGO), and Apple (NASDAQ:AAPL) runs through its fabs.

Q2 2026 delivered $40.20 billion in revenue, up 36.05% year over year, with gross margin hitting 67.7%. Yet at $410.12, shares trade at a discount to the AI names they enable. Can TSM reach $650 by 2027?

Why TSM Shares Cooled Off in August

Strong fundamentals can’t stop short-term pullbacks. TSM is down 4.84% over the past week and up only 1.66% over the past month, despite a 35.64% YTD gain and 77.93%…