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 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.

Taiwan Semiconductor's investors anticipate strong Q3 earnings as the company's AI chips for Nvidia and AMD drive growth. Learn more on TSM stock here.

Taiwan Semiconductor stock is red-hot in Thursday's session after the chipmaker beat Q3 expectations and issued a strong outlook. Here's what you need to know.