Mike Yang, an analyst from Bank of America Securities, reiterated the Buy rating on TSMC. The associated price target is $390.00.
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Mike Yang has given his Buy rating due to a combination of factors that highlight TSMC’s strong position in the semiconductor industry. The company’s advanced technology capabilities, particularly in the 2nm expansion and high-end packaging, position it well ahead of its peers. This technological edge is expected to sustain favorable supply and pricing dynamics, with TSMC maintaining a significant share in advanced technologies and achieving a 5% CAGR in supply growth from 2025 to 2027.
Additionally, TSMC’s robust capital expenditure strategy, which has seen its share in the foundry industry grow significantly, supports its ability to meet the increasing demand for leading-edge technology. Despite the potential inefficiencies in near-term investments, TSMC’s gross margins are expected to remain resilient, protected at around 60%, as sales are projected to grow at a 21% CAGR through 2027. These factors, combined with the company’s capacity to pass technology costs to customers, underpin Mike Yang’s confidence in TSMC’s continued growth and profitability, justifying the Buy rating.
According to TipRanks, Yang is ranked #7176 out of 10073 analysts.