TSMC reaches intraday high, Wall Street bullish on chip stock

view original post

Taiwan Semiconductor Manufacturing Company (TSM) shares swing upward to an intraday high in Monday’s session, surpassing a $1 trillion market cap. Wall Street firms are upping their price targets on the chipmaker, namely Morgan Stanley.

Madison Mills and Seana Smith comment on TSMC’s position in the semiconductor space and the chip company’s astounding year-to-date gains.

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Luke Carberry Mogan.

Video Transcript

Shares of Ts MC jumping over 3% the company hitting $1 trillion in market value after Morgan Stanley and several other brokers boosting price targets on this chip maker.

Prior to their earnings report, optimism does continue to rise over the company’s A I chips heading into the second quarter results extending its rally more than 70% so far this year.

And this is clearly a bullish signal, of course for the in videos of the world as well.

Ts MC is the sole supplier of apple and Nvidia’s most important chips.

So that is making, you know, this bullish signal, not just apply to TS MC but also those other names.

It could be an indicator of those other names.

Now we had Morgan Stanley raising its price target on this stock by about 9%.

So that is a significant raise there.

They expect the chip maker to raise for your sales estimates and their earnings announcements coming out here in the coming weeks.

The broker also Ts MC hiking their wafer prices.

That is a key portion of chips due to strong bargaining power and really the fact that TS MC is the only one at their level in this market right now, putting them in a position to have that strong pricing power similar to what we see with NVIDIA.

But again, TS MC, the only supplier for some of those big names like an apple, like an NVIDIA, really positioning them.

Well, here, exactly when you take a look at this, a lot of that driven by the pricing power that you were just talking about.

And again, this move to the upside this morning, adding to this massive momentum that we’ve seen in TS MC shares really since the start of the year and going back even earlier.

But since January 1st is massive, run up in the stock, you’re looking at gains here over the last seven months or so of just around 80%.

I believe there it is on the screen 82%.

When you take a look at some of their uh outlook here at TS MC may raise its 2020 2024 full year revenue growth guidance, the mid 20% level that was versus the previous guidance of the low to mid at 20% level, citing that insatiable demand that we see for A I and when you talk about that growth going forward, it doesn’t look like anything is going to slow it down.

So that com that coupled with the pricing power and projections here that they actually might be able to raise prices by as much as 5%.

Versus that previous assumption of a 2% growth.

There really showing that there might still be some runway on the stock ahead.

But we will see if Wall Street is right at this point.