Street Calls of the Week
Investing.com - BofA Securities raised its price target on TSMC (NYSE:TSM) to NT$1,400 (US$290) from NT$1,280 while maintaining a Buy rating, citing stronger gross profit margin profile and continued tightness in leading-edge capacity driven by AI.
The firm increased its 2025-27 earnings estimates by 5-6% following TSMC’s second-quarter results, which exceeded expectations with gross profit margins benefiting from higher utilization and cost efficiencies.
TSMC has lifted its 2025 revenue growth forecast to 30% in USD terms, with third-quarter guidance surpassing consensus estimates. BofA Securities sees potential fourth-quarter upside supported by resilient AI demand.
Despite foreign exchange headwinds, TSMC expects its gross margin to remain above 53%. The company’s accelerating N2 node development and continuous CoWoS expansion strengthen its competitive position in the AI era.
BofA Securities views TSMC as a key enabler of artificial intelligence, highlighting the company’s long-term growth prospects underpinned by structural AI demand and technological leadership.
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