Analysts expect Taiwan Semiconductor to raise its full-year sales forecast in next week's earnings report. Taiwan Semiconductor is sending a message that a shortage in the supply of high-end wafer foundry may occur in 2025, and if customers do not accept the company's prices, they may not receive sufficient production capacity allocation.
On the eve of the second quarter financial report, the Taiwan Semiconductor stock price hit a new historical high.
Driven by optimistic expectations, the Taiwan Semiconductor stock continued last week's upward trend and rose by 3% to 1035 New Taiwan dollars, a maximum increase of 4.5% during the trading day, expanding the year-to-date increase to 75% and reaching a record high.
According to analysts from multiple Wall Street investment banks, due to the sustained tension in the global high-end wafer foundry, Taiwan Semiconductor is expected to raise its full-year sales expectations in the financial report to be released next week.
Morgan Stanley raised the company's target price by about 9%. Analyst Charlie Chan wrote in a report released on Sunday:
Taiwan Semiconductor's 'hunger marketing' strategy seems to be working.
Our latest supply chain inspection indicates that Taiwan Semiconductor is sending a message that there may be tension in high-end wafer foundry by 2025.
If customers do not accept Taiwan Semiconductor's price, they may not be able to obtain sufficient capacity allocation.
Morgan Stanley, JPMorgan, Nomura Holdings Inc., and Mizuho Securities Co. are all optimistic about Taiwan Semiconductor's second-quarter performance. According to Bloomberg compiled data, the market is currently expecting Taiwan Semiconductor's second-quarter revenue to increase by 36% year-on-year, the fastest growth rate since the fourth quarter of 2022.
Editor/ping