Taiwan Semiconductor Manufacturing Company Limited

(New York Stock Exchange)
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Bullish +75

BofA raises target to USD 620.00 for Taiwan Semiconductor stock

Analyst upgrade Earnings report AI-generated analysis

πŸ“ˆ Bank of America raised its price target for TSM to USD 620.00 from USD 590.00 while reiterating a Buy rating.

πŸ’° TSM reported third-quarter revenue of TWD 1.49 trillion, beating analyst estimates by 2.05 percent.

πŸš€ Revenue growth was driven by high-performance computing demand and advanced-node production capabilities.

πŸ“… The company is scheduled to release full third-quarter earnings results on October 15, 2026.

πŸ’Έ Bank of America projects fourth-quarter sales growth of 10-15 percent quarter over quarter.

πŸ”­ Gross margins are expected to reach 67.80 percent in the fourth quarter of 2026.

πŸ—οΈ Capital spending is estimated between USD 60 billion and USD 64 billion for 2026.

⚠️ High capital expenditure on overseas capacity expansion may limit overall margin expansion.

πŸ’» The stock trades under the ticker TSM on the NYSE with a market cap of USD 2.3 trillion.

Bullish Signals
  • Bank of America raised its price target to USD 620.00 from USD 590.00 while maintaining a Buy rating.
  • Third-quarter revenue reached TWD 1.49 trillion, exceeding analyst forecasts by 2.05 percent.
  • September revenue surged 54.60 percent year over year to TWD 511.86 billion.
  • Strong demand for high-performance computing and advanced-node production drove recent growth.
  • Analysts expect fourth-quarter sales to rise 10-15 percent quarter over quarter.
  • Gross margins are projected to reach 67.80 percent in the fourth quarter of 2026.
Risk Factors
  • High capital spending of USD 60-64 billion required for overseas expansion may limit margin expansion.
  • The cost of ramping up 2nm production and building new fabrication capacity poses a financial headwind.
Full Analysis
Bank of America raised its price target for Taiwan Semiconductor Manufacturing (TSM) to USD 620.00 from USD 590.00 on October 12, 2026, while maintaining a Buy rating ahead of the company's third-quarter earnings report. The analyst firm cited strong demand for high-performance computing, successful advanced-node production, and an improved product mix as key drivers for this positive valuation adjustment. Taiwan Semiconductor reported third-quarter revenue of TWD 1.49 trillion on October 8, 2026, which exceeded analyst estimates by 2.05 percent. The quarterly figure represented a significant year-over-year increase, driven largely by robust growth in the September quarter where revenue reached TWD 511.86 billion. Looking forward to the fourth quarter of 2026, Bank of America expects TSM sales to grow between 10 and 15 percent quarter over quarter with gross margins projected at 67.80 percent. However, the analyst notes that substantial capital spending ranging from USD 60 billion to USD 64 billion will be required to expand overseas fabrication capacity and ramp up 2nm production. Despite the bullish outlook on revenue and margins, the high level of capital expenditure acts as a counterweight to potential margin expansion due to the costs associated with building new facilities and technology transitions. The company is scheduled to release its full third-quarter earnings results, including net income and future guidance, on October 15, 2026.