Taiwan Semiconductor Bets on AI Growth Surge, Samsung Joins AI Optimism In Trade Show

Taiwan Semiconductor Manufacturing Co TSM and Samsung Electronics SSNLF senior officials expressed their conviction on artificial intelligence prospects at the Semicon Taiwan industry forum in Taipei on Wednesday, as per Reuters.

In July, Samsung reported its highest operating profit since the third quarter of 2022, driven by its chip division. According to analysts, Taiwan Semiconductor raised its full-year revenue forecast backed by AI frenzy and seasonal smartphone demand for both 3nm and 5nm. It is a key supplier to Nvidia Corp NVDA and Apple Inc AAPL.

Taiwan Semiconductor Co-COO Y.J. Mii told Reuters that AI remained a major growth driver, projecting a 50% compound growth rate for AI accelerator for the next couple of years despite taking a toll on global jobs.

Samsung Electronics’ memory chip business President, Lee Jung-Bae, voiced a similar opinion about AI.

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

Taiwan Semiconductor stock gained 70% in the last 12 months. Investors can gain exposure to the stock through First Trust NASDAQ Technology Dividend Index Fund TDIV and iShares Semiconductor ETF SOXX.

Taiwan Semiconductor Stock Prediction For 2024

Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.

Shares of Taiwan Semiconductor have an average 1-year price target of $224.29, representing an expected upside of 37.62%.

Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. No analysts have bearish recommendations on Taiwan Semiconductor, while 7 analysts have bullish ratings. The street high price target from Susquehanna is $250.0, while the street low from Bernstein is $200.0.

Price Action: TSM stock traded higher by 1.16% at $162.38 at the last check on Wednesday.

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