Analysts at Bernstein SocGen Group reiterated an Outperform rating on Taiwan Semiconductor Manufacturing Company (NYSE: TSM) on May 18, raising the price target to $430 from $351.
The revised price target reflects growing confidence that Taiwan Semiconductor is entering a phase of robust and sustained business expansion.
Bernstein SocGen expects the company to deliver a 28% compound annual earnings-per-share growth rate over the next 2.5 years.
The research firm does not expect a potential collaboration between Apple and Intel to have any significant impact on Taiwan Semiconductor’s market position.
While Bernstein SocGen anticipates Intel and Samsung Foundry gaining some business due to geopolitical factors, the firm believes that impact will remain limited.
Samsung Foundry is working to improve its 4-nanometer and 2-nanometer processes, but Taiwan Semiconductor is viewed as remaining ahead of its rival.
Taiwan Semiconductor is the world’s largest dedicated semiconductor foundry, manufacturing microchips for over 500 technology companies.
Unlike many of its industry peers, the company does not design or sell its own products, instead focusing exclusively on manufacturing for clients.
The company mass produces chip designs on silicon wafers for major clients including Apple, Nvidia, and AMD.
Short sellers have identified Taiwan Semiconductor as one of the best 52-week high stocks currently available to investors in the market.
