Morgan Stanley Raises TSMC Target Price to NT$2,988, Lifts 2026 Revenue Guidance Above 40%

TSM-2.32%
Morgan Stanley raised its target price for Taiwan Semiconductor Manufacturing Company (TSMC) to NT$2,988 from NT$2,888, citing stronger-than-expected 2026 revenue guidance. The brokerage upgraded TSMC's full-year revenue growth guidance to above 40% from above 30%, driven by robust AI demand and accelerating cloud capital expenditures from cloud service providers (CSPs). While TSMC did not update its AI semiconductor revenue compound annual growth rate forecast, Morgan Stanley estimated a 70%-80% CAGR for the AI chip business is reasonable based on actual outperformance versus prior guidance of 55%-60%. The firm maintained its "overweight" rating, citing TSMC's strong profitability to attract continued capital inflows.
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