Shares of Taiwan Semiconductor Manufacturing Co. (TSMC) saw a significant uptick in after-hours trading, rising 3.67% to $457.00 after a 1.02% gain during the regular session. This surge was fueled by strong investor sentiment following a bullish note from Bank of America, which raised its price target on the stock to $590 from $490 while maintaining a "Buy" rating.
The positive momentum is attributed to the sustained high demand for TSMC's advanced chips, particularly for artificial intelligence applications. The company's strong performance is also supported by its recent revenue growth, with May's figures showing a 30.1% year-over-year increase, and reports that TSMC may be increasing prices for its advanced-node technologies.