Analysts revise TSMCs stock price target
With the ongoing surge in artificial intelligence (AI) driven by advanced semiconductors, it’s no surprise that major players in the industry have experienced significant stock market movements in recent months. While Nvidia has garnered a lot of attention with its impressive $3 trillion market capitalization rise, another company that shouldn’t be overlooked is the Taiwan Semiconductor Manufacturing Company (TSM).
TSM has been making headlines for various reasons, including its recent agreement to begin production in the United States and its remarkable 80.43% year-to-date rise in stock price, reaching $183.34 per share. Analysts are optimistic that TSM will continue to perform well in the stock market.
Speaking of analysts, TSM has been receiving overwhelmingly positive ratings. All 11 experts on the stock analysis platform TipRanks have given it a perfect “strong buy” score. This has led to bullish price target revisions from major institutions.
Barclays was the first to adjust its price target in June, predicting that TSM’s stock would reach $170 within a year. However, by the time of publication, TSM had already surpassed this target, resulting in a 5% downside from the forecast.
Bank of America also provided an analysis on June 11, emphasizing TSM’s importance in Apple’s AI agreement with OpenAI. Despite setting a price target of $180, the rapid rise in TSM’s stock has turned this prediction bearish. Nevertheless, based on the most recent available information, BAC still considers TSM a “buy” with significant growth potential.
Susquehanna, in its June 17 estimate, maintained a positive outlook on TSM and raised its 12-month price target from $180 to $200. Similarly, Bernstein recently raised its TSM target from $150 to $200 on June 20. Analysts at Bernstein believe that TSM will surpass predictions in its third-quarter report and expect a 28% increase in revenue for the entire 2024. They attribute this bullish projection to the high demand for TSM’s Chip-on-Wafer-on-Substrate (CoWoS) technology, as well as the full capacity of its N3 and N5 production lines.
In conclusion, TSM’s stock market performance and positive analyst ratings indicate a promising future for the company. Investors may want to consider TSM as part of their investment strategy, but as always, investing carries risks and should be approached with caution.