On Sunday, Goldman Sachs maintained a “Conviction Buy” rating on shares of Taiwan Semiconductor Manufacturing Co., Ltd. (2330:TT) (NYSE:TSM) and raised its price target from NT$1,320.00 to NT$1,355.00. Ta. The company expects TSMC’s revenue to continue to grow steadily in 2025, with a 26.8% year-on-year increase, following a 29.4% increase in 2024, all on a US dollar basis.
This positive outlook can be attributed to the continued strong demand for cutting-edge nodes, particularly due to the momentum of artificial intelligence (AI) applications. Goldman Sachs also believes the competitive environment is more favorable for TSMC as rivals Samsung (KS:) Foundry and Intel (NASDAQ:) Foundry face difficulties transitioning to more advanced manufacturing nodes. Pointed out.
The company expects TSMC to implement mid-high single-digit price increases for 3nm and 5nm nodes starting in 2025, and more than 10% price increases for CoWoS (chip-on-wafer-on-substrate) technology. I am doing it. These price adjustments are likely. This is a response to the strong demand and competitive advantage that TSMC holds in the market.
Goldman Sachs expects these strategic price increases to contribute to TSMC’s gross profit expansion. The company expects TSMC’s gross profit margin (GM) to rise to 59.3% in 2025, an improvement from the expected 56.1% in 2024. This growth reflects the company’s ability to leverage its technological leadership and pricing power in the semiconductor industry.
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