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Investing.com - Needham has reiterated its Buy rating and $270.00 price target on Taiwan Semi (NYSE:TSM), the $977 billion semiconductor giant, following the company’s quarterly earnings report that exceeded expectations. The stock, trading near its 52-week high of $238.31, has delivered a strong 21% return year-to-date.
Taiwan Semi delivered what Needham described as "another strong beat-and-raise quarter," prompting the chipmaker to increase its fiscal year 2025 revenue growth outlook from 24-26% to approximately 30%. According to InvestingPro, the company maintains a "GREAT" financial health score, supported by impressive revenue growth of nearly 40% over the last twelve months.
The company reported 18% quarter-over-quarter growth in Q2, surpassing its own guidance of 13%, and projects 8% quarter-over-quarter growth for Q3, compared to previous implied guidance of roughly flat sequential performance.
Despite the strong performance, Taiwan Semi remains cautious about macroeconomic uncertainties, with implied guidance for Q4 representing a high-single-digit percentage decline quarter-over-quarter, according to Needham.
The firm also noted that Taiwan Semi is working on potential 2026 pricing increases, has not received signals from Nvidia (NASDAQ:NVDA) to resume H20 production, and expects continued capital expenditure growth with hints of lower capital intensity in the future.
In other recent news, Taiwan Semiconductor Manufacturing Company (TSMC) has seen various updates from financial analysts. Barclays (LON:BARC) has maintained an Overweight rating with a price target of $240, noting that TSMC’s fiscal year 2025 guidance exceeded market expectations, despite foreign exchange impacts on gross margins. Bernstein SocGen adjusted its price target to $249 from $251, citing foreign exchange pressures that could impact TSMC’s revenue and margins in the coming years. Needham raised its price target to $270, projecting strong AI-driven growth prospects and anticipating revenue growth from $114 billion in 2025 to $160 billion in 2027. Additionally, Goldman Sachs increased its price target to NT$1,210 due to stronger demand for advanced chip packaging technologies and added TSMC to its APAC Conviction List, forecasting significant revenue growth driven by AI and high-performance computing. These developments highlight the analysts’ varied perspectives on TSMC’s financial outlook and growth potential.
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