TSMC’s Strong Market Position and AI-Driven Growth Justify Buy Rating

Analyst Brad Lin of Bank of America Securities maintained a Buy rating on TSMC (TSM – Research Report), with a price target of $220.00.

Brad Lin’s rating is based on TSMC’s strong market position and technological leadership, which are expected to drive long-term value. The company has reaffirmed its 2025 revenue guidance, projecting robust growth in the mid-20% range, bolstered by increasing demand for AI-related technologies. TSMC’s strategic partnerships with key players like NVIDIA and Hon Hai further enhance its competitive edge in the semiconductor industry.
Additionally, TSMC is well-positioned to capitalize on the expanding AI market, with applications extending from data centers to edge devices such as PCs, smartphones, and IoT. Despite potential macroeconomic uncertainties and currency fluctuations, the company’s proactive measures in global expansion and R&D investments are anticipated to sustain its growth trajectory. The manageable impact of TWD appreciation on gross profit margins is also factored into the Buy rating, reflecting confidence in TSMC’s ability to maintain its value proposition.

According to TipRanks, Lin is a 4-star analyst with an average return of 29.5% and an 80.77% success rate.

In another report released on June 3, Barclays also maintained a Buy rating on the stock with a $240.00 price target.