TECH - TSMC Stock Set For 18% Upside? Analyst Says Chipmaking Giant 'More Likely To Beat And Raise In An Upcycle' | Benzinga
Shares of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) surged nearly 10% on Thursday following an optimistic outlook from the foundry. Needham analyst Charles Shi believes there’s more room for growth, maintaining a Buy rating and raising the price target for the U.S.-listed ADR from $115 to $133, implying an approximately 18% potential upside.
The TSMC Thesis: According to Needham’s analysis, TSMC is expected to absorb excess capacity, rebalancing supply and demand by the end of 2024. Shi noted that 2025 could see significant improvements, despite a projected below-trend fab utilization rate in 2024.
The analyst sees a robust 2025 with continued revenue growth and capex recovery.
The decision to transition from 5nm to 3nm processor node tech in the second half of 2024 is linked to TSMC’s plan to shift 5nm production from Taiwan to the ...