BofA Raises TSM Price Target to $590, Maintains Buy

Bank of America (BofA) raised its price target on Taiwan Semiconductor Manufacturing Company (NYSE:TSM) from $490 to $590 on June 24, while maintaining a Buy rating. The adjustment reflects analysts' expectations of rising demand for AI chips, reinforcing TSM's position as a key supplier.

Rating Change

• Previous Price Target: $490
• New Price Target: $590
• Rating: Buy (unchanged)
• Upside: 20.4% from previous close

Analyst Rationale

BofA analysts believe that increasing demand for generative agentic AI solutions will drive TSM's revenue growth in the coming years. The company's investments in advanced manufacturing capacities (3nm and 2nm) also support its technological edge.

Context

The upgrade follows a strong year-to-date performance for TSM, which has risen approximately 45%. Other analysts, including those from Morgan Stanley and Goldman Sachs, also hold positive ratings with targets ranging from $550 to $600.

What to Make of It

The upgrade signals analyst confidence in TSM's long-term prospects, especially amid the ongoing AI boom. However, investors should consider geopolitical risks related to Taiwan and the cyclical nature of the semiconductor industry.