With Taiwan Semiconductor (TSM) stock on a recent rally, investors are wondering what the next move should be. Analysts at Bernstein are optimistic about the company’s future prospects, citing a strong earnings growth rate and attractive valuation metrics.
The analysts have raised their price target for TSM and maintained an Outperform rating, suggesting a potential 17% upside from current levels. They believe that the company’s gross margin will outperform expectations, despite some incremental pressures such as capacity conversion and depreciation costs.
Looking ahead to 2025, Bernstein expects TSM to see a significant increase in capital expenditure, but also a substantial growth in free cash flow. This could lead to a rise in cash dividends for shareholders.
Overall, the analysts at Bernstein are bullish on Taiwan Semiconductor’s future, predicting higher gross margins and sustained revenue growth in the coming years. Investors may want to consider holding onto TSM stock for potential long-term gains.
