Taiwan Semiconductor's Expansion in AI and 2nm Technology Set to Boost Future Growth, Analyst Says
Portfolio Pulse from Anusuya Lahiri
Taiwan Semiconductor Manufacturing Co (TSMC) is expected to see significant growth due to expanding AI demand and advancements in 2nm technology. UBS has given TSMC a 'Buy' rating with a target price of 1,070 yuan, citing strong demand for cloud AI and high-performance computing applications. TSMC's gross profit margin is expected to rise, and its capital expenditure has been revised from $35 billion to $37 billion. TSMC's wafer production capacity is projected to increase significantly by 2025, driven by demand from Nvidia, Intel, and Apple.
July 03, 2024 | 4:27 pm
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POSITIVE IMPACT
Demand for TSMC’s 3nm process remains strong, driven by Apple’s iPhone replacement cycle.
Apple's demand for TSMC's 3nm process for its iPhone replacement cycle suggests continued strong sales for Apple's products, which could positively impact Apple's stock price.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Demand for TSMC’s 3nm process remains strong, driven by new products from major SoC players and Intel's outsourcing orders.
Intel's outsourcing orders for TSMC's 3nm process indicate a reliance on TSMC's advanced technology, which could be seen as a positive development for Intel's future product offerings and stock price.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
TSMC's wafer production capacity is projected to increase significantly by 2025, driven by demand from Nvidia and other cloud computing applications.
Increased wafer production capacity at TSMC, driven by demand from Nvidia, suggests strong future demand for Nvidia's products, which could positively impact Nvidia's stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
UBS has given TSMC a 'Buy' rating with a target price of 1,070 yuan, citing strong demand for AI and advancements in 2nm technology. TSMC's gross profit margin is expected to rise, and its capital expenditure has been revised from $35 billion to $37 billion.
The 'Buy' rating and increased target price from UBS, along with positive outlooks on AI demand and 2nm technology advancements, are likely to boost investor confidence and drive TSMC's stock price up in the short term.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100