TSMC's fair value estimate raised by 45% on strong AI demand.

From Morningstar: 2024-06-25 06:23:00

Taiwan Semiconductor Manufacturing (TSMC) fair value estimate raised to TWD 1,380 per share due to higher pricing expectations and strong AI demand, with revenue and EPS expectations adjusted up to 9% and 17% for 2024-2028. WACC lowered to 8.2%. TSMC remains undervalued despite 60% share price rally.

Edge AI’s prominence grows with Apple’s on-device AI approach and MediaTek’s predictions. Revenue upside expected on smartphones with 10%-20% more silicon content. Datacentre AI surprises include higher demand for chips from Apple, Broadcom, and Nvidia, benefiting TSMC. Qualcomm and Google to manufacture 3nm smartphone chips at TSMC.

Qualcomm debuts laptop AI-enabled chips from TSMC challenging Intel. MediaTek set to join in 2026. Qualcomm and MediaTek’s PC chip market share could add $9 billion in TSMC revenue. Samsung’s struggles may lead Qualcomm and Google to choose TSMC for next-gen smartphone chips. AI-driven silicon content growth expected.



Read more at Morningstar: TSMC Fair Value Raised 45% on AI Demand