Analyst Krish Sankar of TD Cowen maintained a Hold rating on TSMC, with a price target of $250.00.
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Krish Sankar has given his Hold rating due to a combination of factors influencing TSMC’s current and future performance. Despite facing foreign exchange challenges, TSMC’s gross margin in the second quarter exceeded expectations due to higher fab utilization and cost reductions. However, the guidance for the third quarter gross margin was below market expectations, reflecting currency depreciation and rising fixed costs from overseas fab expansions.
Furthermore, while TSMC has raised its revenue outlook for 2025, there are concerns about potential demand impacts from tariffs, which could lead to a decline in fourth-quarter sales. The company’s capital expenditure plans remain unchanged, but the expansion of new fabs in Taiwan and the United States suggests long-term growth potential, albeit with some near-term margin pressures. These factors collectively contribute to the Hold rating, balancing the positive revenue outlook against the risks and challenges ahead.
According to TipRanks, Sankar is a 5-star analyst with an average return of 18.9% and a 58.73% success rate. Sankar covers the Technology sector, focusing on stocks such as Apple, MKS, and Seagate Tech.