TSMC's Q3 earnings exceeded expectations with $10.1 billion net income and $23.5 billion revenue, driven by strong smartphone demand and advanced

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.

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.