Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
On Monday, Goldman Sachs added TSMC, Reliance Industries (NSE:RELI), and Huaqin to its APAC Conviction List, while removing Mitsui Fudosan (OTC:MTSFY). This move reflects Goldman’s positive outlook on these companies’ potential for growth and market performance. TSMC, with its robust market capitalization of $837 billion and impressive revenue growth of ~40% over the last twelve months, has earned a "GREAT" financial health rating according to InvestingPro analysis.
Goldman analysts forecast TSMC’s revenue to grow by 26% in fiscal year 2025 and 14% in fiscal year 2026, driven by accelerating demand in AI and high-performance computing sectors. Currently trading at a P/E ratio of 19.15 with a healthy gross profit margin of 57.4%, InvestingPro analysis suggests the stock is slightly undervalued at current levels. The company’s strong fundamentals are detailed in InvestingPro’s comprehensive Research Report, one of 1,400+ deep-dive analyses available to subscribers.
For Reliance Industries, Goldman anticipates a rebound in EBITDA growth to 16% in fiscal year 2026, compared to 2% in fiscal year 2025. Factors such as improved refining fundamentals, retail growth, and potential telecom tariff hikes are expected to contribute to this growth. The stock is trading below its historical mean, offering a favorable risk-reward ratio according to Goldman.
In the case of Huaqin, a Chinese original design manufacturer, Goldman forecasts a 21% compound annual growth rate in revenue from 2025 to 2027. The company is expected to benefit from increased data center revenue and market share gains in its legacy businesses, with an improvement in operating profit margin projected from 2% in 2024 to 4% in 2028.
Goldman highlighted upcoming catalysts for the stocks on its APAC Conviction List, alongside key strategy and sector reports across global markets, robotaxis, and refining sectors. For TSMC specifically, analysts maintain a strong buy consensus with an average price target suggesting potential upside, while the company’s next earnings report is expected on July 17, 2025.
In other recent news, Taiwan Semiconductor Manufacturing Company (TSMC) has been the focus of several analyst reports and industry discussions. Citi reaffirmed its Buy rating on TSMC, citing confidence in its technological advancements and strategic positioning. The company emphasized its positive long-term growth outlook, particularly in high-performance computing and AI, during the Citi Taiwan Tech Conference. Meanwhile, Morgan Stanley (NYSE:MS) adjusted its price target for TSMC to TWD2,330.00 but maintained an Overweight rating, suggesting that strong AI investments could mitigate concerns about order reductions for TSMC’s CoWoS technology.
Daiwa Securities upgraded TSMC’s stock rating to Buy, despite trimming the price target slightly. The firm noted that TSMC’s revenue remained robust and anticipated a 5% increase in the second quarter, driven by demand for AI servers and upcoming iPhone releases. Bernstein maintained an Outperform rating on TSMC, with a price target of $251.00, highlighting the strategic value of the company’s advanced packaging technologies. They believe that new applications will drive demand for these technologies despite slower adoption of some components.
Stifel revised its expectations for TSMC, predicting reduced capital expenditure in 2025 and a potential slowdown in the expansion of its 2nm technology. This adjustment reflects uncertainties in end demand and potential shifts in the semiconductor industry. Despite these changes, Stifel acknowledged the possibility of significant 2nm capacity growth in 2026, suggesting a longer-term positive outlook. These developments underscore the dynamic environment in which TSMC operates, as it continues to navigate industry challenges and opportunities.
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