According to a research report circulated on Thursday, Aletheia Capital has raised its price target for Taiwan Semiconductor Manufacturing from $500 to $600. The new target suggests a potential increase of approximately 64% from the current trading level.
The firm maintained its "buy" rating and included Taiwan Semiconductor Manufacturing in its high-conviction "Alpha Generation" list.
The rationale behind this rating is straightforward: Taiwan Semiconductor Manufacturing is accelerating its growth. The chipmaking giant appears to be advancing its timelines for next-generation production milestones and expanding capacity plans for advanced packaging technologies. Most of this additional capacity is expected to come online in 2027 and 2028.
If these production lines operate at full capacity, Taiwan Semiconductor Manufacturing could experience another surge in revenue growth, building on an already projected compound annual growth rate exceeding 30% through 2027. The analyst believes that by 2028, the company's profits could nearly triple compared to 2025 levels.
Funding this expansion is estimated to require an investment of $220 to $230 billion by 2028. However, Taiwan Semiconductor Manufacturing's cash generation capability is likely sufficient to cover these expenditures while maintaining stable returns for shareholders.
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