- The bullish sentiment around Taiwan Semiconductor Manufacturing Co. (TSMC) is intensifying as its market capitalization approaches the $1 trillion milestone. This week, multiple Wall Street brokerages have raised their price targets for TSMC, citing increased AI-related demand and potential price hikes in 2025 to boost earnings. Goldman Sachs is particularly optimistic, raising its price target by 19% to NT$1,160, anticipating slight price increases in three- and five-nanometer chip manufacturing.
- JPMorgan Chase expects TSMC to potentially raise its 2024 revenue guidance and increase its capital expenditures. They predict AI will account for 35% of TSMC’s total sales by 2028. Citigroup and Morgan Stanley have also raised their price targets due to a stronger earnings outlook. As the main advanced-chip supplier for Nvidia, TSMC has benefited greatly from the rise of AI.
Why it matters
Recently, TSMC surpassed Berkshire Hathaway to become the eighth-largest company globally by market capitalization, with its US-listed ADRs up 73% this year, bringing its market value to $932 billion.
