TSM Stock Price: $149 Target From Bernstein

By Amit Chowdhry ● Jan 15, 2021
  • The stock price of Taiwan Semiconductor Mfg. Co. Ltd. (NYSE: TSM) has received a price target of $149 by Bernstein. These are the details.

The stock price of Taiwan Semiconductor Mfg. Co. Ltd. (NYSE: TSM) has received a price target of $149 by Bernstein. And Bernstein analyst Mark Li upgraded the stock from “Market Perform” to “Outperform.”

Li is expecting Taiwan Semiconductor (TSMC) to see another 40% upside in the stock price. Li cited that the world “needs advanced silicon and only TSMC has that.”

In related news, TSMC announced it is going to spend up to $28 billion on advanced chips and capacity. TSMC is one of Apple’s largest chip suppliers.

“It’s a monster number,” said Brett Simpson, a partner at Arete Research via The Wall Street Journal. “That’s a signal about how they think about the economic recovery and also the confidence they have in their long-term growth.”

TSMC had also reported record quarterly revenue and net profit earlier this week. This was largely driven by high demand for 5G smartphones along with the expanding use of consumer electronics necessary for remote work during the COVID-19 pandemic.

TSMC’s net profit increased to 142.77 billion New Taiwan dollars ($5.1 billion) — up 23% compared to the same period a year earlier. During this quarter, TSMC is expecting to hit between $12.7 billion and $13 billion. This is up from $10.3 billion for the January to March quarter.

Disclosure: I have a small TSM position in my stock portfolio.