Bank of America Raises Taiwan Semiconductor Manufacturing Price Target to NT$1,600 Due to Improved Pricing Outlook and Strong Earnings Growth Prospects.

Bank of America has raised Taiwan Semiconductor Manufacturing's (TSM) price target to NT$1,600 from NT$1,400, citing improved pricing and earnings growth prospects. The investment bank expects TSM's revenue to grow 24% YoY, driven by the ramp-up of 2nm technology, and benefits from strong demand for non-Apple smartphones and high-performance computing.

Bank of America has increased its price target for Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) to NT$1,600 from NT$1,400, citing improved pricing and earnings growth prospects. The investment bank expects TSM's revenue to grow by 24% year-over-year (YoY), driven by the ramp-up of 2nm technology and strong demand for non-Apple smartphones and high-performance computing (HPC) Morgan Stanley Raises PT on Taiwan Semiconductor Manufacturing Company (TSM) Stock^[1].

Morgan Stanley has also recently raised its price target for TSM to NT$1,588, highlighting healthy AI demand, stable foreign exchange, and pricing power Morgan Stanley Raises PT on Taiwan Semiconductor Manufacturing Company (TSM) Stock^[1]. The firm noted that AI semi demand has demonstrated significant upside, with growth in AI application-specific integrated circuits and GPUs expected to continue through 2026. Additionally, TSMC's advanced technologies, such as 2nm, A16, and A14, have been embraced by customers seeking better energy efficiency.

TSMC's Q2 2025 revenue was NT$335.77 billion, reflecting a 33.8% YoY increase and a 3.9% month-over-month rise Morgan Stanley Raises PT on Taiwan Semiconductor Manufacturing Company (TSM) Stock^[1]. Advanced technologies, including 7-nanometer and more advanced processes, accounted for 74% of TSMC's total wafer revenue during the same period. Brown Advisory, an investment management company, acknowledged the potential of TSM but suggested that certain AI stocks offer greater upside potential and carry less downside risk Morgan Stanley Raises PT on Taiwan Semiconductor Manufacturing Company (TSM) Stock^[1].

In a separate development, AMD's next-generation Instinct MI450-series AI accelerators will be manufactured using TSMC's N2 (2nm-class) fabrication technology, marking the first time the company will use a leading-edge manufacturing process for AI GPUs AMD could beat Nvidia to launching AI GPUs on the cutting-edge 2nm node — Instinct MI450 is officially the first AMD GPU to launch with TSMC's finest tech^[2]. This move could provide AMD with a significant advantage over Nvidia's upcoming Rubin GPUs, which are set to be produced using TSMC's N3 technology. AMD's Instinct MI450-series accelerators will be tailored for AI and HPC applications, supporting appropriate data formats and instructions.

Meanwhile, TSMC reported a 30% increase in sales for the third quarter, driven by surging AI chip demand TSMC sales soar 30% on surging AI chip demand^[3]. The Taiwanese tech company has solidified its position as a key supplier of AI chips to leading tech firms such as Nvidia Corp., Advanced Micro Devices Inc., and Broadcom Inc. Additionally, TSMC manufactures processors for Apple's iPhones and other devices.

The recent surge in deals between Nvidia and OpenAI, as well as AMD and OpenAI, has raised concerns about potential artificial inflation of the trillion-dollar AI market TSMC sales soar 30% on surging AI chip demand^[3]. Despite these concerns, TSMC's latest sales figures indicate that the AI momentum remains steady.