Just a few days ago, we said, “After gapping to a low of $133.86, Taiwan Semiconductor (TSM) is oversold on RSI, MACD and Williams’ %R and could bounce higher. Helping, Morgan Stanley just named TSM a top pick and reiterated its overweight rating on the stock.”
At the time, TSM traded at around $150. It’s now up to $174.54 and could rally even higher.
For one, demand for semiconductors is only growing, especially with the artificial intelligence story still heating up. Because of that, Precedence Research says the global semiconductor market could grow to $1.13 trillion by 2033 from $544.8 billion in 2023. Plus, with substantial demand for semiconductors for the auto, data center, AI, 5G, 6G and the Internet of Things markets expected to rocket, there’s still big growth ahead.
Two, analysts at Bernstein just reiterated an outperform rating on the stock with a $220 price target. “Expecting no notable damage from the Blackwell delay (report), we expect strong N3 & N4/5 demand from data center AI & high-end smartphone to offset the slow recovery of older nodes,” they said, as quoted by CNBC.