Major Apple supplier TSMC reaches market value of $1 trillion

Major Apple supplier Taiwan Semiconductor Manufacturing Co. (TSMC) rose to a record intraday high, hitting a market value of $1 trillion in Taipei, after Morgan Stanley joined a list of brokers that raised their price targets on the chipmaker ahead of earnings releases.

Jeanny Yu for Bloomberg News:
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TSMC shares rose as much as 4.5 percent in Taipei, extending their rise this year to over 75 percent. Morgan Stanley raised its price target on the stock by about 9 percent and expects the chipmaker to raise its full-year revenue forecast in next week’s earnings release. The broker also expects TSMC to raise wafer prices due to its strong negotiating power.

“TSMC’s ‘starvation marketing’ strategy appears to be working,” Morgan Stanley analysts including Charlie Chan wrote in a note on Sunday. “Our recent supply chain reviews suggest that TSMC is sending the message that supply to leading foundries may become tight in 2025 and customers may not receive sufficient capacity allocation without appreciating TSMC’s value.”

Analysts at JPMorgan, including Gokul Hariharan, also expect the company to raise its sales forecast during the earnings call.

“We expect TSMC to be more constructive regarding demand for AI accelerators,” he wrote in a statement on Sunday.

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