Morgan Stanley Raises TSMC Price Target on Strong AI Demand

Morgan Stanley Boosts TSMC Target Amid AI Boom

Morgan Stanley has increased its price objective for Taiwan Semiconductor Manufacturing (TSMC), citing the chipmaker's strong performance and accelerated investment in response to sustained, AI-driven demand.

Analyst Upgrade Details

The investment bank raised its price target on TSMC by 5% to NT$2,088. This adjustment follows a strong quarterly report and an unexpected increase in capital spending from the semiconductor giant. Morgan Stanley reiterated the stock as a top pick, highlighting better visibility on earnings and potential for higher gross margins.

Impact on Market Outlook

The positive revision reflects growing confidence in TSMC's ability to capitalize on the artificial intelligence sector. Consequently, Morgan Stanley has raised its earnings per share estimates for TSMC by 8% for 2026 and 7% for 2027, signaling a bullish long-term outlook for the company's stock.

Summary

The upgrade underscores TSMC's critical role in the global AI supply chain. Investors will closely watch the company's capacity expansion and margin performance as it meets surging demand from major tech firms.

FAQ

Q: What is the new price target for TSMC from Morgan Stanley?
A: The new price target is NT$2,088, a 5% increase.

Q: Why did Morgan Stanley raise the target?
A: The decision was based on strong AI-driven demand, higher gross margin potential, and increased capital spending by TSMC.

Source: Investing.com