Bernstein analysts hiked their price target on Taiwan Semiconductor Manufacturing Corp (TSMC) (NYSE:TSM) and maintained their positive rating on the stock, stating that the chipmaking giant was set to benefit greatly from strong artificial intelligence demand this year.
Bernstein hiked TSMC’s price target to T$1,444.0 from T$1,260.0 ($290 from $249 for its ADRs), and maintained the stock at Outperform.
Bernstein said strong AI and non-AI demand will drive at least 33% revenue growth for TSMC in 2025, above the company’s forecast of 30%. The brokerage also sees earnings rising past consensus for the year, citing fewer foreign exchange headwinds and strong AI trends, especially given the company’s dominance in contract chipmaking.
While the company’s capital expenditures in 2026 and 2027 are expected to increase, TSMC’s reusing of equipment is expected to dampen pressures on earnings.
Bernstein sees TSMC hiking prices on its top-end chips, which will also help mitigate higher expenses and unfavorable foreign exchange rates.
The company is largely insulated from U.S. trade tariffs, given its favorable standing with Washington and its healthy production capacity in the country.
TSMC is expected to continue benefiting from strong AI demand in the coming months, especially as NVIDIA Corporation (NASDAQ:NVDA) and Wall Street’s so-called AI hyperscalers flagged no plans to slow their spending on AI infrastructure.
Bernstein also noted that chip demand in non-AI sectors had started to recover in recent months, which could benefit TSMC, albeit mildly.
Source :
https://www.investing.com/news/stock-market-news/tsmc-bernstein-hikes-pt-maintains-outperform-on-stronger-ai-outlook-4223264
