The investment case for Taiwan Semiconductor Manufacturing just got stronger after Apple’s push into artificial intelligence, according to Bank of America. Analyst Brad Lin hiked his price objective on Taiwan Semiconductor, saying the buy-rated chipmaker is an “indispensable and reliable partner” to Apple. This week, the iPhone maker hit record highs after the firm announced its long-awaited foray into AI , notably with its product called Apple Intelligence. “We believe the semi demand upside from Apple can get bigger with its widening AI service, from a relatively low base,” Lin wrote on Tuesday. “TSMC is Apple’s supplier for the A- and M-series semiconductors and is well poised to benefit from multi-year growth.” TSM 1D mountain Taiwan Semiconductor Manufacturing Co. The U.S.-listed shares of Taiwan Semiconductor have already outperformed this year, advancing roughly 60%. But the analyst’s $180 price objective implies roughly 8% upside from Tuesday’s close. The stock popped nearly 4% in trading Wednesday morning. Lin noted that Apple is Taiwan Semiconductor’s biggest customer, accounting for roughly one-quarter of the chipmaker’s revenue. Its chips put a strong emphasis on privacy, which also bodes well for demand.
Source: cnbc.com