Bank of America Securities analyst Mike Yang maintained a Buy rating on TSMC on December 10 and set a price target of $390.00.
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Mike Yang’s rating is based on TSMC’s strong sales performance and positive outlook for future growth. Despite a slight month-over-month decline in November sales, the company’s year-over-year sales increased by 24%, and quarter-to-date sales are tracking ahead of seasonal expectations. This robust performance is driven by higher-than-anticipated demand for high-end mobile chipsets and solid growth in high-performance computing and AI sectors, along with favorable foreign exchange trends.
Furthermore, investors are optimistic about TSMC’s potential for significant sales growth in 2026, fueled by ongoing AI investments and advancements in 3nm and Chip on Wafer on Substrate technologies. Although there are concerns about potential margin pressures due to new technology investments, strong pricing and high utilization rates are expected to sustain healthy margins. TSMC’s valuation remains attractive, with potential for convergence with industry averages as investors recognize its resilience in maintaining strong margins through market cycles.
In another report released on December 7, Bernstein also maintained a Buy rating on the stock with a $330.00 price target.