Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the best blue-chip AI stocks to buy now. On March 30, Citigroup reiterated a Buy rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and raised the price target to NT$2,800 from NT$2,600.

According to Citigroup, the company is well-positioned to benefit from the accelerating artificial intelligence chip market. Consequently, the firm expects the company’s earnings per share to increase by 18% in 2027 to NT$130.72 and by 28% in 2028 to NT$165.99. Net profit is also projected to increase to NT$2.43 trillion in 2026 from NT$1.72 trillion in 2025. Revenue is projected to increase in 2026 to NT$5.12 trillion.

Citigroup also expects Taiwan Semiconductor’s artificial intelligence revenue to grow by over 100% into 2027. The increase would come on CoWoS’ packaging capacity, growing from 1.3 million wafers in 2026 to 2 million in 2027.

The robust revenue and earnings increase would come at the back of N3 and N2 capacity growth. The N2 node is projected to account for 29% of total revenue in 2027, up from 15% in 2026. Citigroup expects Nvidia to become the first A16 customer for its Feynman GPU in 2028, with Google and AWS AI chips migrating to N2 late 2027.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest independent semiconductor foundry, manufacturing advanced microchips for companies such as Apple, Nvidia, and AMD. It specializes in fabricating chips designed by others for use in smartphones, AI data centers, and automobiles, and holds roughly 72% of the global foundry market.

While we acknowledge the potential of TSM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: Motley Fool’s 10 High-Growth Stock Picks and 7 Single-Digit Stocks With Double-Digit Growth Potential.

Disclosure: None. Follow Insider Monkey on Google News.