09 Mar Bank of America says TSM can ride the generative A.I. boom, jump more than 25%
Posted at 13:19h
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by Editor
Taiwan Semiconductor Manufacturing has further upside on the generative AI boom, according to Bank of America. Analyst Brad Lin raised his price objective on the company’s U.S.-listed shares to $115 from $105. The new target implies upside of 26.6% from Wednesday’s close. “Taiwan Semiconductor Manufacturing Co. (TSMC) is a key beneficiary and among our 20 global AI stock picks owing to the rising and widening applications of large language models (LLMs) and generative AI, led by ChatGPT,” Lin wrote. “We think the generative AI should act as one of the greatest drivers, thanks to the substantial computational requirements for running and training the AI models.” The analyst said that Taiwan Semiconductor will ride the “structural uptrend” in generative AI opportunities, which will drive demand for several semiconductors. “Datacenter (including supercomputing) related revenue currently accounts for ~10% of the revenue, and we estimate that CPU/GPU/accelerator upside for generative AI could potentially contribute 1%-2% initially and likely up to 8% in a bull case,” Lin wrote. Taiwan Semiconductor shares are up 21.9% this year after falling 82% last year. TSM YTD mountain TSM in 2023 —CNBC’s Michael Bloom contributed to this report.
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