TSMC Stock Set For 18% Upside? Analyst Says Chipmaking Giant 'More Likely To Beat And Raise In An Upcycle'
Portfolio Pulse from Shanthi Rexaline
Needham analyst Charles Shi maintains a Buy rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and raises the price target from $115 to $133, suggesting an 18% upside. TSMC's stock surged nearly 10% on Thursday. Shi predicts TSMC will beat and raise expectations in an upcycle, with significant improvements expected in 2025. The transition to 3nm tech and the Arizona plant's potential early production are key factors. Shi is cautious about the end of the automotive inventory correction but expects TSMC's auto sector growth to support revenue independently.

January 19, 2024 | 9:39 am
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POSITIVE IMPACT
Needham analyst Charles Shi maintains a Buy rating on TSMC and raises the price target to $133, indicating an 18% potential upside. The stock already surged nearly 10% and may continue to see positive momentum based on the analyst's expectations of beating and raising in an upcycle, especially with the transition to 3nm tech and the Arizona plant's potential early production.
The positive outlook from Needham, including the raised price target and the stock's recent surge, suggests investor confidence in TSMC's growth prospects. The transition to advanced 3nm technology and the strategic move to start production in the U.S. are likely to be viewed favorably by the market, supporting the stock's short-term performance.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100