Analyst increases TSMC price target, riding off major US tech giants making chips on N3 node

Bernstein analysts have just lifted their price targets for TSMC's Taiwan and US-listed shares, with the new price target hitting NT$1080, up from NT$900, while US-listed shares have new price targets of $200, up from $150.

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The analysts expect TSMC to surpass its 2024 guidance, which is driven by two factors: high-end smartphone demand and advanced technology nodes used by virtually every major US tech company: Apple, AMD, Intel, NVIDIA, Qualcomm, and more.

TSMC's continued data center AI revenue continues to climb, but an "unexpected boost" reports Investing.com, comes from AI's influence on smartphone upgrades. We've already got Samsung with Galaxy AI on its new Galaxy S24 smartphones, and Apple has ChatGPT-powered "Apple Intelligence" coming later this year.

Bernstein analysts noted: "N3 & N5 capacity is full now. We expect 3Q24 revenue guide to beat & 2024 full-year USD revenue to rise by 25% & EPS by 28%".

• Read more: Intel Lunar Lake CPU orders on TSMC N3B received, next-gen chips being made now
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• Read more: TSMC to raise 3nm manufacturing costs by 5%, new CoWoS advanced packaging 10-20% in 2025
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• Read more: TSMC's 3nm process production lines booked through 2026: Apple, Qualcomm, NVIDIA, and AMD
• Read more: Synopsys, Samsung achieve production tapeout of next-gen Exynos SoC on 3nm node
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The analyst firm projects EPS to possibly see an additional 26% in 2026, with continued demand that we've been hearing about recently on CoWoS advanced packaging at TSMC, as well as the earlier-than-expected launch of Intel's new Lunar Lake processors, and the rumored price increases of advanced nodes.

• Read more: TSMC gets 3nm orders from Apple, Intel and AMD: for iPhone 16, Lunar Lake CPUs and Zen 5 CPUs
• Read more: TSMC pumping out Apple 3nm orders: AMD, Intel, NVIDIA, Qualcomm, all on TSMC's 3nm in 2024
• Read more: NVIDIA's next-gen R100 AI GPU: TSMC 3nm with CoWoS-L packaging, next-gen HBM4 in Q4 2025
• Read more: AMD's next-gen Zen 6 APU codenamed 'Sound Wave' teased, made on TSMC 3nm node