Morgan Stanley raises target price for TSMC.

Morgan Stanley analysts raised their target stock price of TSMC by 12% to NT$2888, citing improved revenue and pricing prospects for the company. The bank also anticipates that the semiconductor giant will raise its revenue and capital expenditure expectations for the year in the upcoming earnings conference call next month. With strong artificial intelligence capital spending and chip demand, it is expected that TSMC will increase its 2026 revenue expectations to about 40% year-on-year growth and raise its capital expenditure to $56 billion, reaching the high end of the previously expected range of $52 billion to $56 billion. Given TSMC's production capacity, EUV lithography technology supply priority, and leading process node advantage, competition in foundry between Samsung and Intel is not expected to have a significant impact.