Taiwan Semi stock price target raised to $360 from $330 at BofA

Investing.com - BofA Securities raised its price target on Taiwan Semiconductor Manufacturing Company (NYSE:TSM) to $360.00 from $330.00 on Thursday, while maintaining a Buy rating on the stock. The semiconductor giant, currently trading near $305 and approaching its 52-week high of $307.30, has delivered an impressive 55.6% return year-to-date. According to InvestingPro data, TSM’s overall financial health score is rated as "GREAT," supporting the bullish outlook.

The price target increase reflects BofA’s updated assessment of Taiwan Semi’s position in the artificial intelligence market, where the firm sees the company taking a more positive stance on long-term growth trajectory. With a market capitalization of $1.21 trillion and robust revenue growth of 39.5% over the last twelve months, TSM has demonstrated strong execution in the AI space.

BofA noted that Taiwan Semi maintains a solid position in the AI sector by ensuring system-level performance through both front-end and back-end manufacturing capabilities, while beginning to evaluate needs with customers’ customers to better fulfill demand for advanced technology.

The financial firm raised its 2025-2027 earnings per share estimates for Taiwan Semi by 7-12% to reflect recent results and the company’s updated business outlook.

BofA maintained its price-to-earnings multiple of 22x for Taiwan Semi and kept its valuation base at 2026 estimates while raising the price target to NT$1,800 (US$360 for ADR) from NT$1,600 (US$330 for ADR).

In other recent news, Taiwan Semiconductor Manufacturing Company (TSMC) reported strong financial results for the third quarter of 2025. The company achieved revenue of $33.1 billion, representing a 10.1% sequential increase, and a significant year-over-year earnings per share (EPS) increase of 39%. Despite previous concerns about foreign exchange-driven margin erosion, TSMC’s gross margin reached 59.5%. Following these positive results, Needham raised its price target for TSMC to $360 from $270, maintaining a Buy rating. Needham’s decision was influenced by the company’s strong third-quarter performance and a favorable outlook in the AI sector. These developments underscore the company’s robust financial health and strategic positioning in the market.

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