TSMC Share Price Target Boosted On Back Of AI Smartphone Surprise, Early Intel Launch
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Booming demand for AI products has led Bernstein to raise their share price targets for the Taiwan Semiconductor Manufacturing Company (TSMC). According to Bernstein, who raised TSMC's share price target to $200 from $150, TSMC is facing strong demand for its N3 semiconductor technology. Coupled with strong demand for smartphone processors and a growth in packaging capacity should enable TSMC to grow its revenue next year and outpace estimates for the third quarter believes the firm. The price upgrade follows multiple reports from Taiwanese supply chain sources, which have claimed that TSMC is increasing its packaging and leading edge process prices due to robust demand trends.
Bernstein Surprised By Strong Smartphone AI Demand - Increases TSMC Share Price Target
The share price target hike is based on several assumptions on Bernstein's end. The firm believes that TSMC's 3-nanometer and 5-nanometer capacity is full, and it will allow TSMC to beat its guidance for the third quarter and grow its full year revenue by 25%. The firm adds that while demand for data center AI products is strong, it was surprised by "AI driving an upward shift" in the demand for smartphone products.
Related Story Intel Lunar Lake CPU Mass Production Commences At TSMC Using N3B Node, First Laptops Heading For Q3 Launch
As opposed to data center AI products, which revolved primarily around heavy-duty accelerators designed by firms like NVIDIA, Intel and AMD, smartphones use AI processors called neural engines. While AI is a relatively new trend in the technology industry, firms such as Apple have included these 'engines' in their products for quite some time to help the devices with image processing and other functions.
Sepaking of which, a key portion of Berntein's TSMC share price upgrade relates to Intel. The world's largest chip manufacturer is
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