Nucor earnings beat by $0.08, revenue fell short of estimates
On Thursday, Morgan Stanley (NYSE:MS) revised its price target for shares of Taiwan Semiconductor Manufacturing Co. Ltd. (2330:TT) (NYSE: TSM), reducing it from TWD2,454.00 to TWD2,330.00. Despite the decrease in price target, the firm maintained its Overweight rating on the stock and selected it as a Top Pick. Currently trading at $173.79, TSM shows strong market presence with a $734 billion market cap. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value model.
The adjustment comes amidst a climate of concern regarding potential order reductions for TSMC’s Chip on Wafer on Substrate (CoWoS) technology. Morgan Stanley analysts believe that increased capital expenditure in artificial intelligence (AI) from companies such as Meta (NASDAQ:META) and Microsoft (NASDAQ:MSFT) could alleviate some of these worries. The analysts foresee a swift recovery in the stock’s performance once the current uncertainties are mitigated. This optimism is supported by TSMC’s robust financials, with a 40% revenue growth and an EBITDA of $64.4 billion in the last twelve months.
The statement from Morgan Stanley highlighted the impact of AI investments on TSMC’s prospects: "The strong AI capex from Meta and Microsoft should dispel some concerns about order cuts for TSMC’s CoWoS." The firm anticipates that once these doubts are addressed, TSMC’s stock is expected to rebound quickly. InvestingPro data reveals the company maintains excellent financial health with an overall score of 3.5/5, particularly strong in profitability metrics.
TSMC, a leading player in the semiconductor industry, has been closely watched by investors due to the critical role it plays in global electronics supply chains. The confidence expressed by Morgan Stanley in the company’s outlook, despite the price target reduction, reflects a positive view on the company’s future performance.
The Overweight rating indicates that Morgan Stanley analysts believe TSMC stock will outperform the average total return of the stocks analyzed by the firm over the next 12 to 18 months. The designation of TSMC as a Top Pick suggests that the analysts see a significant potential for the stock relative to other companies in the industry.
In other recent news, Taiwan Semiconductor Manufacturing Company (TSMC) has experienced several key developments. Daiwa Securities upgraded TSMC’s stock rating to Buy, citing strong revenue projections for the second quarter of 2025 and a belief that the market has been overly pessimistic. Despite this upgrade, Daiwa slightly lowered the price target due to uncertainties related to tariff policies. Meanwhile, Bernstein maintained its Outperform rating on TSMC, highlighting the company’s advancements in packaging technology as a strategic asset for future growth. Stifel, on the other hand, revised its expectations for TSMC, suggesting lower capital expenditure and expansion plans, which led to a reduced price target. This change reflects concerns about end demand and a potential slowdown in TSMC’s aggressive expansion. JPMorgan also adjusted its price target for TSMC, lowering it while maintaining an Overweight rating, due to anticipated revenue guidance adjustments for 2025. The company is expected to see a 5-8% growth in the second quarter, but potential impacts from tariffs and a global economic slowdown have led to a more cautious full-year revenue forecast. Despite these challenges, TSMC is projected to maintain a long-term growth trajectory, particularly in datacenter AI technologies.
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