Overview
- TSMC, which reports earnings on April 16, is under pressure to ease shortages at its most advanced plants that make AI chips on 5nm and 3nm technology.
- Citigroup raised its price target to NT$2,800 on March 30 and lifted profit forecasts through 2028 on stronger demand for AI hardware.
- Bernstein increased its target to $351 on March 16 and kept an Outperform rating, citing broad demand that now extends beyond core AI processors.
- Analysts describe two tracks in TSMC’s business, with high-margin AI chips constrained by capacity and slower legacy nodes like 28nm and 16nm potentially up for reallocation, a move the company has not confirmed.
- Shares have climbed more than 130% over the past year, yet some investors remain cautious because tension around Taiwan could disrupt operations and key customer supply.