TLDR
- Susquehanna raised its price target on TSM to $575 from $500, keeping a Positive rating
- TSM stock rose over 2% in Monday premarket, trading around $473.50
- CEO C.C. Wei said AI chip demand will outpace supply for years, even after U.S. fabs come online
- TSMC plans a total of 10 U.S. chipmaking facilities, with $165B in announced investments plus ~$100B in additional capital
- Q2 earnings are expected July 16; Wall Street sees EPS of $3.69, up from $2.47 a year ago
Taiwan Semiconductor Manufacturing (TSM) stock was up over 2% in Monday premarket trading, changing hands around $473.50. The move came as investors continued to back the chipmaker’s AI growth story despite a mixed broader market.
Taiwan Semiconductor Manufacturing Company Limited, TSM
TSM is now trading above its previous 52-week high of $465.22 — a level that could act as fresh support if the stock pulls back.
Susquehanna analyst Mehdi Hosseini raised his price target to $575 from $500 on June 22, keeping a Positive rating. The firm updated its model around TSMC’s capex and capacity strategy, which it believes will beat both consensus and buy-side expectations.
Hosseini flagged one key uncertainty: how token growth and rising silicon requirements could create supply-demand imbalances down the road.
The analyst upgrade came on the heels of comments from CEO C.C. Wei at TSMC’s annual shareholder meeting in Taiwan. Wei told shareholders that AI chip demand will outpace supply for years to come — even as TSMC races to expand.
Wei also said that once U.S. facilities are operational, TSMC still won’t be able to fully meet demand from American customers. Production capacity, he said, remains a bottleneck.
TSMC’s U.S. Expansion
Under a U.S.-Taiwan trade deal, TSMC plans to build at least four more U.S. chipmaking plants on top of six already planned — a total of 10 facilities. That adds up to $165 billion in announced investments plus roughly $100 billion in additional capital.
Two land parcels acquired in Arizona are expected to cover TSMC’s needs for a decade, Wei said.
Despite the ongoing supply crunch, Wei stressed the company won’t raise prices suddenly. Stability, he said, matters more than short-term margin gains.
TSMC’s expansion is critical for Nvidia’s Blackwell GPUs, AMD’s MI450/Helios chips, and custom ASICs from Broadcom. Major hyperscalers are set to pour billions into AI infrastructure this year alone, and TSMC produces the bulk of the world’s advanced AI chips.
The company raised its full-year sales guidance in April and said capex would likely trend toward the upper end of its $56 billion forecast range.
Earnings Ahead
The next big catalyst is the Q2 earnings report, expected July 16. Wall Street is projecting EPS of $3.69, up from $2.47 in the same period last year.
Revenue is expected to come in at $39.76 billion, compared to $30.07 billion a year ago.
The stock trades at roughly 39.7 times earnings — a premium that reflects how much faith investors have already placed in the AI growth thesis.
Analyst consensus remains a Buy, with an average price target of $442.50, though several firms have moved higher. Barclays recently raised its target to $470, while Needham lifted its forecast to $480 in April.
Technically, TSM is trading 16.6% above its 50-day moving average of $405.61 and 41.1% above its 200-day moving average of $335.15. A golden cross formed in June 2025 and that bullish structure remains intact.
Susquehanna’s new $575 target is currently the highest published figure on the street.
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