Bank of America Raises TSMC Price Target to NT$2,530
BofA Securities analyst Haas Liu raised the price target on TSMC (2330:TT) (NYSE: TSM) to NT$2,530.00 (from NT$2,360.00) while maintaining a Buy rating.
“We estimate TSMC’s 2Q26 sales will grow 7-9% QoQ (vs. +8% in 1Q26), on strong HPC order backlog.
Despite the headwinds from 2nm ramp and higher summer electricity cost, GMs should still see mild QoQ expansion from 63-65% guide in 1Q26 to ~66% in 2Q26 on 3nm strength with 100%+ utilization, better mix and its customers’ willingness to pay premium for faster wafer turns amid strong AI demand, lifting operating leverage.
We keep our Buy rating on TSMC and lift our PO from NT$2,360/US$470 to NT$2,530/US$500, still on 20x ’27E P/E.
Its current valuation is undemanding at 15x ’27E P/E (vs. its long term 11-21x) backed by its dominant position in leading edge technologies and capacity share.”
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