Taiwan Semiconductor blasted past its financial expectations for Q3 and is adjusting its Q4 outlook accordingly.

With high growth baked into the market, the upside for the stock is a bit diminished. However, if you're patient, the long-term trends are still there for Taiwan Semi's stock to deliver market-beating returns over the next five years.

Taiwan Semiconductor Manufacturing Co (NYSE:TSM) is ramping up its 2nm technology development at home and beyond despite odds ranging from geopolitical tensions to supply chain constraints to natural calamities like earthquakes and hurricanes.

The consensus rating for Taiwan Semiconductor is Outperform, based on 3 analyst ratings. With an average one-year price target of $236.67, there's a potential 26.47% upside.

Director of Investor Relations [Foreign language] Good afternoon, everyone, and welcome to TSMC's third quarter 2024 earnings conference call. This is Jeff Su, TSMC's and your host for today. TSMC is hosting our earnings conference call via live audio webcast through the company's website at where you can also download the earnings release materials.

It's the main producer of chips designed by Nvidia, which leads the market for semiconductors used for AI applications.