In a report released on August 13, Brad Lin from Bank of America Securities reiterated a Buy rating on TSMC, with a price target of $290.00.
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Brad Lin’s rating is based on TSMC’s strong likelihood of being exempt from the proposed U.S. Section 232 semiconductor tariffs due to its significant investment in U.S. manufacturing, particularly the multi-phase Arizona projects. This exemption is expected to reduce near-term risks and potentially strengthen TSMC’s competitive edge over peers with less U.S. presence. The Buy rating is reiterated with a price objective of 1,400 TWD, reflecting confidence in TSMC’s strategic positioning.
Even in a scenario where tariffs are imposed, the impact on TSMC’s earnings is projected to be minimal, ranging from 0.8% to 4.0%. This is due to the resilience of AI and HPC segments, which are less price-sensitive, and the potential for AI demand to offset any shortfall. Additionally, the company’s valuation remains attractive, with a projected 18x PE by 2026, further supporting the Buy recommendation.
According to TipRanks, Lin is a 5-star analyst with an average return of 34.9% and a 92.86% success rate.