BofA Raises TSMC Price Target on Strong Outlook, Keeps Buy Rating

BofA expects the company’s income to turn by 7% to 9% quarter-over-quarter successful the 2nd 4th of 2026. This compares with 8% maturation successful the archetypal 4th of 2026. The steadfast believes that the maturation successful the 2nd 4th volition beryllium driven by a coagulated backlog of high-performance computing orders.

Image: TSMC

The probe steadfast besides expects Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) gross margins to amended slightly. Margins are projected to turn from the first-quarter guidance scope of 63% to 65% to astir 66% successful the 2nd 4th of 2026. This betterment is expected contempt challenges specified arsenic the ramp-up of 2-nanometer accumulation and higher energy costs during the summer.

BofA pointed retired that it values Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) astatine 20 times its estimated 2027 earnings, compared with the existent valuation of 15 times. This is wrong the stock’s semipermanent scope of 11 to 21 times. The steadfast pointed to the company’s beardown presumption successful leading-edge technologies and its stock of manufacturing capableness arsenic reasons supporting the valuation.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is simply a Taiwanese multinational semiconductor declaration manufacturing and plan institution that manufactures, packages, and tests integrated circuits for assorted industries.

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