In a report released on July 5, Brad Lin from Bank of America Securities reiterated a Buy rating on TSMC, with a price target of $260.00.
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Brad Lin has given his Buy rating due to a combination of factors that highlight TSMC’s strong market position and future growth potential. Despite the short-term challenges posed by the appreciation of the Taiwanese dollar, which affects gross profit margins and non-operating income, Lin emphasizes that these are outweighed by TSMC’s long-term structural advantages. The company’s leadership in technology and robust customer demand are pivotal in maintaining its competitive edge.
Moreover, Lin points to the anticipated growth in demand for AI and advanced packaging, as well as the expansion plans for 2nm technology, which are expected to drive significant revenue increases. The strategic pricing and demand outlook, alongside investments in the U.S. under the One Big Beautiful Bill Act, further bolster TSMC’s growth trajectory. These factors, coupled with the expected rise in average selling prices due to advanced node transitions, support Lin’s optimistic outlook and Buy rating for TSMC’s stock.
In another report released on July 3, Barclays also maintained a Buy rating on the stock with a $240.00 price target.