Taiwan Semiconductor Manufacturing (TSM.US) Rises Over 3% as Morgan Stanley Forecasts Q4 Gross Margin to Exceed 60%

Stock News12-18 23:51

On Thursday, Taiwan Semiconductor Manufacturing (TSM.US) surged over 3% to $286.17. Reports indicate that the company will officially begin mass production of its 2nm process by year-end, with capacity at two factories already fully booked. To meet soaring demand, TSMC plans to build additional facilities, requiring an estimated investment of $28.6 billion. Major clients like Apple, Qualcomm, MediaTek, and AMD have secured TSMC's 2nm capacity, with Apple taking over half of the initial output. The remaining capacity will be allocated among other customers. TSMC aims to increase monthly production to 100,000 wafers by late 2026.

Morgan Stanley raised its price target for TSMC from NT$1,688 to NT$1,888, citing revenue and margin growth potential. The firm recommends investors increase holdings ahead of early 2026. TSMC is projected to guide for mid-20% revenue growth in 2026, potentially achieving 30% YoY growth. Morgan Stanley also expects the company's gross margin to surpass 60% in Q4 2025 and remain above 60% throughout 2026.

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