DA Davidson Initiates Taiwan Semi at Buy, $450 Price Target

DA Davidson analyst Gil Luria initiates coverage on Taiwan Semi (NYSE: TSM) with a Buy rating and a price target of $450.00.

“We are initiating coverage of TSM with a BUY rating and a $450 price target based on what we believe is a compounding execution moat in leading edge manufacturing that’s translating into a durable, self-reinforcing advantage as AI compute demand scales through the gigawatt-gigacycle.

TSMC’s moat has increasingly become its ability to repeatedly industrialize architectural transitions into predictable, high volume platforms.

What customers ultimately buy is cost per good die delivered on schedule, which is set by defectivity and variability control, cycle time, and whether the PDK and standard cell libraries are stable enough to close timing and power without outsized design work.

We’re now seeing N2 in volume production as TSMC’s first nanosheet GAA node, and A16 being targeted for the back-half of this year with backside power delivery, underscoring a shifting importance toward both power integrity and manufacturable system performance as opposed to just transistor geometry.

And while competitors can and have matched individual features on paper, the repeatable conversion of new device and power architecture into high yield, high throughput manufacturing with validated enablement and predictable ramps is the actual edge which TSMC has historically widened the gap on.”

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.