Citi placed Taiwan Semiconductor Manufacturing Co. (TSM) on a 30-day positive catalyst watch. The bank reiterated its "Buy" rating ahead of the company's second-quarter earnings meeting on July 16.
Analyst Laura Chen raised the price target on TSMC's Taiwan-listed shares. Chen cited strong visibility into sustained, broad-based demand for AI-related chips.
This optimistic outlook anticipates TSMC will raise its 2026 revenue growth forecast. It also expects TSMC to raise its long-term targets.
Citi anticipates continued strong demand for TSMC's advanced 3-nanometer and 2-nanometer technologies. This could lead to higher wafer prices into next year.