Brad Lin, an analyst from Bank of America Securities, maintained the Buy rating on TSMC (TSM – Research Report). The associated price target is $265.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Brad Lin has given his Buy rating due to a combination of factors including TSMC’s significant expansion in the United States. The company’s decision to increase its U.S. investment to $165 billion, which includes the establishment of three new fabrication plants, two advanced packaging facilities, and a major R&D center, is expected to generate substantial economic output and create numerous jobs. This expansion is supported by key partners such as Apple, NVIDIA, AMD, Broadcom, and Qualcomm, which rely on TSMC’s advanced manufacturing capabilities.
Brad Lin believes that this strategic move will solidify TSMC’s position as a leading semiconductor foundry while mitigating geopolitical risks. The expansion aligns with U.S. policy objectives, potentially reducing the impact of tariffs and securing domestic chip production. Despite challenges in execution and cost management, the expansion is seen as a practical solution that avoids disruptions and ensures continued leadership in AI and smartphone chip production. This strategic positioning could lead to a stock re-rating, even with potential margin pressures during the expansion phase.
In another report released on March 3, Bernstein also maintained a Buy rating on the stock with a $251.00 price target.