Barclays Boosts Taiwan Semiconductor Manufacturing (TSM) Price Target Amid AI Growth and Technological Leadership

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has seen a significant boost in its price target from Barclays, reflecting the company’s strengthened leadership and growth potential in the AI sector. On October 23, Barclays increased its price target for TSM from $200 to $215, maintaining an “overweight” rating. This move highlights TSM’s continued dominance due to its technological advancements, making it a key player in the rapidly expanding AI market.

The increased price target is part of a broader trend where major tech companies are heavily investing in data centers to drive AI advancement. According to a recent analysis by McKinsey, data center power consumption in Europe is expected to almost triple by 2030, necessitating substantial investments in electricity and grid infrastructure. This surge in demand underscores the critical role companies like TSM will play in meeting the technological and energy requirements of the AI sector.

Institutional investors have also shown increased confidence in TSM. Callahan Advisors LLC raised its position in TSM by 67.1% in the third quarter, acquiring an additional 3,358 shares. Similarly, Impax Asset Management Group plc lifted its stake in TSM by 33.7% during the same period, buying an additional 6,664 shares. These moves indicate a strong institutional backing for the company’s stock.

TSM’s financials and market performance also reflect its robust position. The company has a market capitalization of $1.02 trillion, a P/E ratio of 31.37, and a beta of 1.12. The stock opened at $195.72 on Wednesday, with a 52-week range of $91.29 to $212.60. TSM has also announced an increased quarterly dividend, which will be paid on January 9, 2025, to investors of record on December 12, 2024.

Analysts from various firms have issued positive ratings for TSM. Needham & Company LLC and Susquehanna have reaffirmed “buy” ratings, while TD Cowen and Barclays have also raised their price targets. However, StockNews.com lowered its rating from “buy” to “hold” in a recent report. Overall, TSM has a consensus rating of “Moderate Buy” with an average price target of $209.00.