Update shared on 02 Dec 2025
Fair value Increased 0.65%Analysts have raised their price target for Taiwan Semiconductor Manufacturing by $10, citing stronger than expected artificial intelligence demand and positive forward-looking signals in recent results.
Analyst Commentary
Bullish Takeaways- Bullish analysts have consistently raised their price targets on Taiwan Semiconductor Manufacturing, reflecting growing confidence in the company’s ability to capitalize on robust artificial intelligence demand and positive forward guidance.
- Recent industry updates highlight strengthening momentum in AI chip demand. TSMC is seen as the primary beneficiary due to its advanced manufacturing capabilities and strong client pipeline.
- Proactive capacity expansion, especially in advanced packaging and wafer sorting, is expected to further differentiate TSMC from competitors and secure additional business from top semiconductor and hardware clients.
- Upgrades and positive commentary on related supply chain players point to a broad-based expectation of continued growth and improving fundamentals for TSMC. There is potential for upside as 2026 and 2027 earnings estimates are revised higher.
- Bearish analysts express caution over valuation risks. They note that semiconductor peers, including TSMC, could face pressure if sector multiples compress in the next cycle, potentially limiting further upside in share prices.
- Some market participants remain watchful of execution risks, particularly as TSMC navigates ongoing industry capacity expansions and as global supply chains adapt to heightened demand fluctuations.
- Despite strong fundamentals, a cautious approach remains for European technology hardware and broader semiconductors. This suggests that macroeconomic trends and market volatility could temper near-term growth expectations.
What's in the News
- TSMC has filed a lawsuit in Taiwan's Intellectual Property and Commercial Court against its former Senior Vice President, Wei-Jen Lo, over concerns about the potential transfer of trade secrets to Intel. TSMC claims there is a high probability that Lo could use or disclose confidential information at Intel (Reuters).
- Intel's CEO has publicly dismissed allegations of any merit in the TSMC lawsuit and emphasized Intel’s policies against the misuse of third-party intellectual property (Bloomberg).
- A Taiwan minister stated the U.S. does not intend to impose harsh tariffs on Taiwan’s semiconductor industry. This statement comes as Taiwan awaits the outcome of a U.S. security investigation and negotiates a potential tariff deal amid recently imposed 20% tariffs on certain exports (Financial Times).
- Intel CEO Lip-Bu Tan denied that a new hire took trade secrets from TSMC to Intel and asserted that the company respects other firms’ intellectual property rights (Bloomberg).
- Muddy Waters Capital CEO Carson Block warned it is not time to bet against major U.S. technology companies, including TSMC, despite concerns about a possible bubble in AI (Bloomberg).
Valuation Changes
- Fair Value has increased slightly, rising from NT$1,753.64 to NT$1,765.07 per share.
- Discount Rate has fallen modestly from 9.28% to 9.14%.
- Revenue Growth projections have improved, with the forecast moving from 17.09% to 17.64%.
- Net Profit Margin is expected to decline marginally, from 44.05% to 43.53%.
- Future P/E is virtually unchanged, with a slight increase from 23.11x to 23.12x.
Disclaimer
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