Bank of America Securities analyst Robert Cheng reiterated a Buy rating on TSMC today and set a price target of $330.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Robert Cheng’s rating is based on a combination of factors that highlight TSMC’s strong future prospects. Cheng has raised the earnings per share estimates for 2026 and 2027 by 8% and 9%, respectively, due to an improved pricing outlook. This positive outlook has led to an increase in the target price-to-earnings multiple from 21x to 22x, resulting in a new price objective of NT$1,600 from the previous NT$1,400.
Cheng anticipates a robust ramp-up of TSMC’s 2nm technology in 2026, which is expected to drive a 24% year-over-year revenue growth. The 2nm technology is projected to contribute 9% to the revenue in its first year of mass production, with potential for even greater contribution if demand from smartphones and high-performance computing sectors exceeds expectations. Additionally, the higher average selling price, driven by a greater proportion of US production and advanced processes, along with TSMC’s strategic overseas expansion, supports the Buy rating.
In another report released on October 3, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $332.00 price target.