Bank of America: TSMC's advanced technology and manufacturing continue to gain momentum, maintaining a "Buy" rating

Zhitong
2025.04.28 13:44
portai
I'm PortAI, I can summarize articles.

Bank of America Securities maintains a "Buy" rating on Taiwan Semiconductor and reiterates a target price of $220. Analyst Brad Lin pointed out that Taiwan Semiconductor showcased its ongoing efforts in technological leadership and manufacturing at the 2025 Technology Symposium, emphasizing that the demand for artificial intelligence and high-performance computing will drive growth in the semiconductor market. Despite the short-term weakness in the automotive business, Taiwan Semiconductor remains optimistic about future growth potential and plans to launch new technologies to meet market demand

According to Zhitong Finance APP, after TSMC (TSM.US) held its 2025 Technology Symposium in North America, Bank of America Securities maintained a "Buy" rating for the company and reiterated a target price of $220.

Analysts led by Brad Lin stated that TSMC's 2025 Technology Symposium held in North America in April 2025 reinforced their positive view of the company's unwavering focus on technological leadership and manufacturing excellence. The company continues to provide customers with a reliable technology roadmap that not only enables innovation in the field of artificial intelligence but also enhances its relevance in high-performance computing (HPC/AI), automotive, cutting-edge AI, and Internet of Things (IoT) applications.

The analysts pointed out that the key message is clear—"Artificial intelligence is still in its early stages, and TSMC is laying the groundwork to support a significant increase in semiconductor demand, which is expected to exceed $1 trillion by 2030."

Additionally, the analysts noted that TSMC reiterated that the momentum of artificial intelligence data centers will remain strong through 2025, driving the development of advanced nodes and advanced packaging. With XR glasses, wearable devices, IoT, and radio frequency (RF) transitioning to FinFET-class logic, cutting-edge artificial intelligence is rapidly emerging.

Lin and his team indicated that the company also noted that while the automotive business is weak in the short term, it will continue to grow structurally as semiconductor capacity increases. The automotive platform is upgrading to N5A and N3A.

TSMC also views humanoid robots, 6G, and WiFi 8 as long-term development trends. The analysts pointed out that TSMC's Vice Chief Operating Officer Kevin Zhang stated that TSMC's silicon solutions will create $250 billion in value for U.S. companies in 2024, doubling to over $500 billion by 2030, and that the global semiconductor market is likely to exceed $1 trillion by 2030.

The tech giant is expanding its technology product portfolio from the high-end market to the mass market. The analysts added that TSMC is launching technologies such as A14 (scheduled for production in 2028) and A16 (artificial intelligence/high-performance computing, to be produced in the second half of 2026)

Source: Zhitong The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.