Needham & Company raised its price target on Taiwan Semiconductor Manufacturing (TSM) to $530 from $480. The firm maintained a "Buy" rating on the stock.
Analysts cited an updated AI wafer demand model and recent earnings results as key drivers for the revision.
Needham based the new price target on estimates rolled forward to 2028. The firm forecasts TSM's top-line growth at 40% in 2027. It projects 24% growth in 2028.
The analysis anticipates increased spending on TSM's advanced CoWoS and HBM packaging technologies. These technologies are crucial for AI accelerators.