Taiwan Semiconductor bets on AI growth surge, Samsung also brings AI optimism to trade show – Taiwan Semiconductor (NYSE:TSM)

Taiwan Semiconductor Manufacturing TSMC Samsung Electronics Switzerland At the Semicon Taiwan industry forum in Taipei on Wednesday, senior officials expressed confidence in the future of artificial intelligence, according to Reuters.

Samsung in July reported its highest operating profit since the third quarter of 2022, driven by its chip division. Analysts said Taiwan Semiconductor Co. Ltd., a major supplier to Nvidia Corp, raised its full-year sales forecast on the back of an AI boom and seasonal smartphone demand for both 3nm and 5nm. NVDA and Apple Inc. AAPL.

YJ Mii, co-chief operating officer at Taiwan Semiconductor, told Reuters that AI remains a big growth driver and that he expects a compound growth rate of 50 percent for AI accelerators over the next few years, despite the hit to jobs around the world.

Lee Jeong-bae, head of Samsung Electronics’ memory chip division, expressed a similar view about AI.

Taiwan Semiconductor led the global foundry market in the second quarter of 2024 with a 62% share, followed by Samsung Electronics with a 3% share.

Taiwan Semiconductor’s shares have risen 70% over the past 12 months, and investors can get exposure to the stock through the First Trust Nasdaq Technology Dividend Index Fund. TDIV and iShares Semiconductor ETF socks.

Taiwan Semiconductor stock price forecast for 2024

Stock research is a valuable source of information to learn about a company’s fundamentals. Analysts create financial models based on the company’s fundamentals and future expected earnings to determine price targets and stock recommendations.

The one-year average target price for Taiwan Semiconductor’s stock is $224.29, suggesting an upside potential of 37.62%.

Differences in assumptions can lead analysts to arrive at vastly different price targets and recommendations. No analysts have a bearish recommendation on Taiwan Semiconductor, while seven have a bullish rating. Susquehanna has a market high price target of $250.0, while Bernstein has a market low of $200.0.

Price Action: TSM shares were up 1.16% at $162.38 as of last check on Wednesday.

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