Goldman Sachs Bullish on Taiwan Semiconductor Manufacturing Company Limited (TWSC:2330)
US banking giant Goldman Sachs is showing optimism towards an under-the-radar artificial intelligence (AI) stock that has surged over 68% since March. According to a report by Insider Monkey, Goldman has added Taiwan Semiconductor Manufacturing Company Limited (TSMC:2330) to its “Conviction Buy” list, after already being on its buy list.
TSMC: A Semiconductor Powerhouse
Taiwan Semiconductor Manufacturing Company Limited (TSMC) is the largest company in Taiwan and is often regarded as a “pure play” on semiconductors. The company manufactures chips for some of the world’s leading tech firms, including Apple, Nvidia, and Qualcomm.
Positive Outlook and Price Target
Goldman Sachs is increasing its price target on TSMC due to diminishing concerns about significant AI-chip order cuts and growing demand for the company’s CoWoS (Chip on Wafer on Substrate with silicon interposer) technology, which is designed to power ultra-high-performance computing for AI and other applications. The bank anticipates that more smartphone, server, and networking customers of TSMC will start adopting CoWoS technology.
Goldman projects that TSMC’s dollar revenue will grow by 29% this year and 17% in 2026. The firm has raised its price target for TSMC to NT$1,210 from NT$1,145. Currently, TSMC is trading at NT$1,080, with Goldman’s price target suggesting a 12% increase from the current prices.
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