Taiwan Semiconductor Manufacturing Company Gets Buy Rating from Analyst

Taipei, Taiwan – On November 17, Mike Yang from Bank of America Securities reaffirmed a Buy rating for Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) with a price target of $390. This comes days after the company unveiled a $14.98 billion budget aimed at enhancing its long-term capacity.

The budget, approved on November 11, will fund the construction of new fabrication facilities and the expansion of advanced technology and packaging capabilities, with funding allocated for research and development through 2026. Yang highlighted that Taiwan Semiconductor’s substantial capital expenditure is positioning the company for increased market share in the foundry industry.

He expects the company’s gross margins to maintain around 60% until 2027, supported by an anticipated sales growth rate of 21% over the period. Yang also pointed out that the company’s advancements in 2nm technology and high-end packaging offer it a competitive advantage over its peers.

Moreover, Yang projected a potential supply growth of 5% from 2025 to 2027, thanks to these technological capabilities. Taiwan Semiconductor Manufacturing Company Ltd. stands as the largest dedicated semiconductor foundry worldwide, producing advanced integrated circuits for diverse sectors, such as technology and automotive.

As the semiconductor industry continues to evolve, Yang’s optimistic outlook reflects confidence in Taiwan Semiconductor’s strategic initiatives and technological advancements.