TSMC: Resilient Growth, Sustained Technology Leadership, and Margin Upside Support Buy Rating

In a report released yesterday, Haas Liu from Bank of America Securities reiterated a Buy rating on TSMC, with a price target of $470.00.

Haas Liu has given his Buy rating due to a combination of factors that point to resilient growth and earnings power at TSMC. Recent monthly sales, while seasonally softer, are still tracking above typical first-quarter patterns, supported by robust demand in high-performance computing and AI chips, plus earlier-than-usual orders for consumer semiconductors that should carry momentum into the next quarter.

The report also notes that although Taiwan’s energy-sourcing challenges and rising electricity costs are making margins more sensitive to power prices, TSMC’s operations are unlikely to face meaningful disruption and its profitability drivers remain intact. On top of that, Liu highlights TSMC’s sustained technology leadership, expectations for strong revenue expansion and margin improvement, and a target price based on a premium multiple that still implies upside from the current valuation, collectively justifying the Buy recommendation.

In another report released on February 27, TipRanks – OpenAI also reiterated a Buy rating on the stock with a $450.00 price target.