Analysts see the stock as a screaming buy. According to Bloomberg's analyst compilation, TSMC shares will likely climb ~50% to a record high in 12 months as macro headwinds ease and investors focus on the company's fundamentals.
Fund managers also look positive, further aided by Chair Mark Liu's recent 30% revenue growth forecast this year.
Alex Huang, manager of Capital Hi-Tech Fund in Taipei, sees recovery in the second half following ease in inflationary concerns and the Ukraine war.
The most liquid $475 billion company accounts for ~27% of Taiwan's entire equity market value, making it an easy selling target for some foreign investors, Huang added.
Bernstein analysts forecasted share gain and uninterrupted growth in 2022, 2023, and 2024 from robust pricing.
JPMorgan analysts believed TSMC stock already factored in a downturn, maintaining a Buy rating. However, the extent of potential downside to 2023 estimates was still unclear as per the firm.
Morgan Stanley analysts saw the current nervousness in the market as an excellent opportunity to buy TSMC, whose future looked secure.
Price Action: TSM shares traded higher by 0.72% at $91.50 in the premarket on the last check Friday.