Taiwan Semiconductor Started 2nm Chip Production. Time to Buy?

"Taiwan Semiconductor Manufacturing ( NYSE:TSM) shares have been unstoppable in the past year, gaining more than 52%, thanks in part to a handful of incredible quarters. The big 2025 winner has what it takes to keep on winning in the new year, so say analysts over at JP Morgan. With 2nm chip production kicking off just a few weeks ago, investors seem as pumped as ever to jump into a fab titan that continues to lead the charge."

"While there's a lot of earnings momentum behind the foundry giant, with shares now going for just north of 33.0 times trailing price-to-earnings (P/E) after spending much of 2025 with a trailing P/E multiple in the mid-to-high 20s, it remains to be seen if the multiple can expand any further, especially given the geopolitical risks involved with the Taiwan-based firm as well as growing competition in the foundry space, as Intel ( NASDAQ:INTC) gains serious traction."

"JPMorgan analyst Gokul Hariharan doesn't sound too concerned as Intel picks up momentum in fabs, especially given their belief that most "mission-critical" projects involving the 2nm process will go to Taiwan Semiconductor. Undoubtedly, it's best to stick with what's more critical with the seasoned veteran, even as the U.S.-based rival looks to win over business and prove itself that it can rise again."

Taiwan Semiconductor Manufacturing shares rose more than 52% over the past year following several strong quarters and the start of 2nm chip production. The company’s move into 2nm signals on-schedule industry progress and supports expectations of higher AI-driven demand in 2026. Shares trade just above a 33.0 trailing P/E after much of 2025 at mid-to-high 20s. Multiple expansion faces uncertainty because of geopolitical risks related to Taiwan and intensifying foundry competition from Intel. A JPMorgan analyst expects most mission-critical 2nm projects will continue to go to Taiwan Semiconductor, while Intel’s US base could encourage gradual customer moves rather than abrupt shifts.

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