Bank of America analysts raised their price target for Taiwan Semiconductor Manufacturing Company (TSMC) from $490 to $590. The firm maintained its buy rating for the chipmaker. Analysts attributed the bullish revision to TSMC’s critical role in the artificial intelligence supply chain.
Robust demand for AI accelerators from major technology companies supports the updated forecast. TSMC maintains significant pricing power over its advanced chip nodes. The company reported a 30.1% year-over-year revenue increase for May. Management projects full-year revenue growth to exceed 30% in U.S. dollar terms.
TSM shares extended gains during after-hours trading on June 25. The market reaction reflects optimism regarding TSMC’s manufacturing dominance and its ability to capitalize on sustained AI sector growth.