TSMC Is Now Most Overbought Since 2021
“Consumers and business communities’ confidence in GenAI’s added value justifies any potential price increase,” said Bloomberg Intelligence analyst Charles Shum. The next valuation re-rating catalyst for the company is an exponential growth of generative AI used in devices like smartphones and computers, he added.
The world’s top chip foundry jumped as much as 4.6% to NT$769 in Taipei on Thursday. Other chipmakers in Taiwan also edged higher, as MediaTek Inc closed 3.4% up and ASE Technology Holding Co climbed 9.7% to a fresh record.
See also: Intel cuts more than 500 jobs in Oregon as part of layoff plan
JPMorgan Chase & Co hiked its target price for TSMC by 10% Wednesday, calling the stock an “enabler for almost all AI processing at the data center and the edge.” AI-related revenues should surge by one fourth by 2027 and the company should maintain its lead in developing some of the advanced chips, analysts including Gokul Hariharan wrote in a note.
TSMC has rallied almost 30% this year, riding on the market obsession over generative AI powered by Nvidia’s earnings. It is scheduled to report its monthly sales on Friday.
