Taiwan Semiconductor shares are in a long-term bull market with a target price of $230. Utility and Nuclear stocks have been in the news over the last two weeks as AI companies are partnering-up with energy providers, but there’s another level to this trade.

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.

The shares are up 20% to trade at $207.94, on track for their best single-session gain since May 2023. TSM -- a Schaeffer's Top Pick for 2024 -- earlier hit a record high of $212.50, and is now 100% higher year-to-date.

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.

TSMC, the world's largest contract chipmaker, bet on sustaining its strong growth, after reporting on Thursday a forecast-beating 54% jump in quarterly profit driven by soaring demand for chips used in artificial intelligence (AI).

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.