Bernstein Raises Taiwan Semi Price Target to $351
Bernstein SocGen Group analyst Mark Li raised the price target on Taiwan Semi (NYSE: TSM) to $351.00 (from $330.00) while maintaining an Outperform rating.
“AI continues fueling growth; raise price target to NT$2,200; AI continues gathering momentum, and non-AI demand also remains strong. We update our TSMC model and raise price target to NT$2,200.
AI contribution is expanding from XPU to HBM base die. XPU demand still exceeds TSMC’s capacity, and we see TPU particularly getting stronger lately.
Though not as much as XPU, HBM base die is beginning to contribute to TSMC’s AI revenue too, as SK hynix this year, & Micron & NVIDIA later ask TSMC to produce their base dies.
We project AI revenue to rise from 18% of TSMC’s total revenue last year to low- to mid-20s% this year. We model more CoWoS capacity from TSMC & OSAT (CoWoS/HBM model ).
To meet the rising demand, TSMC is expected to build slightly more CoWoS capacity. OSATs are building too, but wafer production will stay at TSMC & propel TSMC’s revenue to grow.”
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