Options Market Statistics: TSMC Bullish on AI Demand, Forecasts 20% Revenue Growth This Year, Options Pop

The great run in shares of Advanced Micro Devices continued Thursday following an upbeat forecast about the chip market and an optimistic call from analysts at TD Cowen.

AMD was up 1.56% to $162.67 Thursday after Taiwan Semiconductor Manufacturing said it expects revenue growth this year to be more than double the rate of the broader chip market. TSMC manufactures AMD chips.

In addition to the bullish forecast from TSMC, TD Cowen analyst Matthew Ramsay increased his price target on the shares to $185 from $130 and maintained his outperform rating.

A major reason for Ramsay's belief in the stock is AMD's potential success in the artificial-intelligence space.

"While Nvidia remains the AI leader, we believe sizable upside opportunities remain for AMD as well," he wrote in a research note. AMD's MI300 is a data center graphics processing unit and the company's offering for AI projects and applications.

"The potential of MI300 within the AI TAM (total addressable market) is still ahead for AMD with potentially large upside over the next couple years as an increasingly capable GenAI alternative," Ramsay said.

U.S.-listed shares of Taiwan-based chip maker Taiwan Semiconductor Manufacturing were up 9.8% after the company said it expects revenue growth this year of at least 20%, more than double the rate of the wider chip market. The company reported fourth-quarter profit that fell 19% from a year earlier but still topped analysts' expectations. Revenue in U.S. dollars fell 1.5% in the quarter to $19.62 billion but rose 13.6% from the third quarter.