Oct. 7 at 4:10 PM
Bank of America raised its price target for Taiwan Semiconductor Manufacturing to NT
$1,600 from NT
$1,400, citing improved pricing outlook and greater earnings visibility through 2026. The bank reiterated its Buy rating, with the stock last trading at NT
$1,435. BofA increased EPS estimates for 2026/27 by 8%/9% and raised its P/E target to 22x from 21x. Analysts expect strong adoption of 2nm technology in 2026, projecting 24% YoY revenue growth, with 2nm contributing ~9% of total revenue, on par with 7nm and above 5/3nm (8%/6%). Non-Apple smartphone demand and high-performance computing clients are key growth drivers sustaining 3nm momentum. Pricing is expected to strengthen due to higher U.S. production share, the A16 process (part of 2nm), and resilience amid geopolitical dynamics.
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