Home / Business and Economy / TSMC: Analysts Bullish Despite AI Stock Competition
TSMC: Analysts Bullish Despite AI Stock Competition
29 May
Summary
- Bernstein raised TSMC's price target to $430.
- Company expected to grow EPS by 28% annually.
- TSMC remains the leading semiconductor foundry.
Analysts at Bernstein SocGen Group have reinforced their Outperform rating for Taiwan Semiconductor Manufacturing Company (TSM), significantly increasing its price target to $430 from $351. This move reflects strong confidence in the company's current growth phase.
Bernstein forecasts a substantial 28% compound annual earnings-per-share growth rate for TSMC over the next 2.5 years. They believe potential collaborations between Apple and Intel will not materially affect TSMC's market dominance.
While acknowledging that Intel and Samsung Foundry might gain some business due to geopolitical considerations, Bernstein expects this impact to be limited. Despite Samsung Foundry's advancements in 4-nanometer and 2-nanometer processes, TSMC is expected to maintain its technological lead.
As the world's largest dedicated semiconductor foundry, TSMC manufactures microchips for over 500 technology firms, including giants like Apple, Nvidia, and AMD, without designing its own products.
