Taiwan Semiconductor Manufacturing Co. (TSMC) has announced that it will be hosting a press conference on July 18, and UBS has given the company a “Buy” rating with a target price of 1,070 yuan as demand for generative AI continues to grow. In their report, UBS analysts are optimistic about the semiconductor cycle benefiting from solid cloud AI and high-performance computing applications. They anticipate TSMC’s gross profit margin to increase due to expanding AI demand and advanced process technology.
UBS estimates TSMC’s earnings per share to be 40.14 yuan, 53.27 yuan, 60.75 yuan, 69.5 yuan, and 80.23 yuan from 2024 to 2028, respectively. Lin Lijun, an UBS analyst, highlighted TSMC’s outlook for 2025, expecting increased revenue forecasts and improved demand for 2nm technology. UBS revised TSMC’s capital expenditure from $35 billion to $37 billion, with capital intensity reaching 34%.
TSMC’s wafer production capacity is projected to reach 40,000 per month by 2024 and 55,000 by the end of