existMorgan Stanley also followed other brokerage firms in raising their target prices.TSMC’s market value once exceeded the $1 trillion mark. TSMC shares rose as much as 4.8% after opening in New York, and their gains this year have exceeded 80%. TSMC surpassed Berkshire Hathaway earlier in June to become the world's eighth-largest company by market capitalization based on ADR.


asThe exclusive chip supplier to Apple and Nvidia, TSMC is one of the most valued AI concept stocks by global investors. The stock prices of companies with a market value of US$3 trillion continue to rise under the wave of artificial intelligence. In comparison, the valuations of their indispensable chip manufacturers appear more affordable. A series of Wall Street brokerages have already raised TSMC's stock price, citing the surge in artificial intelligence-related demand and the company's potential to raise product prices in 2025 to increase profits.

One of the reasons why TSMC ADRs outperform Taiwan stocks is that it is easier for foreign investors to invest in ADRs.

Raise target price

Morgan Stanley raised its price target for TSMC by about 9%, with the chipmaker expected to raise its full-year revenue forecast when it reports next week. The bank also expects TSMC to raise wafer prices due to its strong bargaining power.

Morgan Stanley analysts Charlie Chan and others wrote in a report on Sunday that TSMC's hunger marketing strategy seems to be working. "Our latest supply chain survey indicates that TSMC is sending a message that cutting-edge foundry supply may be tight in 2025, and customers may not be able to obtain sufficient capacity allocation without recognizing TSMC's value."


Gokul Hariharan et al.JPMorgan analysts expect the company to raise revenue guidance on the earnings call.