Bank of America Raises TSMC Price Target, Citing Stronger Pricing Outlook and Growth Potential
Bank of America (BofA) has increased its price target for Taiwan Semiconductor Manufacturing Company (TSMC) to NT$1,600 from NT$1,400, pointing to an improved pricing outlook and strong earnings visibility through 2026. The firm maintained its Buy rating on the stock, which recently traded at NT$1,435.
According to BofA analysts, the upgrade reflects stronger expectations for TSMC’s 2-nanometer (2nm) technology ramp-up and sustained growth in high-performance computing and smartphone demand. The bank raised its 2026 and 2027 earnings-per-share (EPS) estimates by 8% and 9%, respectively, and increased its valuation multiple to 22 times earnings, up from 21.
“We lift 2026/27E EPS estimates by 8%/9% for TSMC, mainly due to an improved pricing outlook,” analysts wrote. “As a result, we raise our price objective to NT$1,600 (US$330) from NT$1,400 (US$290), maintaining our 2026 valuation base.”
BofA forecasts a 24% year-over-year revenue increase for TSMC in 2026, driven by a strong 2nm production ramp that could contribute around 9% of total revenue — similar to the company’s 7nm contribution and higher than 5nm or 3nm levels.
The report also highlighted the importance of non-Apple smartphone makers and high-performance computing (HPC) clients in supporting TSMC’s 3nm production momentum.
On pricing strength, analysts noted that margins will benefit from a higher proportion of U.S. production, the A16 process (under the 2nm family), and greater resilience amid geopolitical uncertainties. They added that TSMC’s global expansion is not only driven by customer demand but also by resource limitations in Taiwan, such as electricity capacity.
BofA concluded that TSMC’s consistent execution and comprehensive service capabilities remain the key factors behind its successful overseas expansion and continued market leadership.
