BofA Remains Bullish on Taiwan Semiconductor Manufacturing (TSM) – Here’s Why - Yahoo Finance

Bank of America (BofA) maintained a 'Buy' rating on Taiwan Semiconductor Manufacturing Company (TSMC) and raised its price target from $490 to $590 on June 24, 2026, reflecting strong confidence in th... Read original →

BofA’s upgrade of TSMC to a $590 target hinges on agentic AI’s cascading demand for heterogeneous compute—simultaneously boosting CPUs and AI accelerators (GPUs/ASICs). This not only strains 3nm-and-below EUV capacity but also elevates advanced packaging (e.g., CoWoS) as the new bottleneck, where TSMC’s vertical integration shines. Geopolitically, delayed U.S. CHIPS Act disbursements reinforce near-term reliance on Taiwan, China fabs, though Arizona and Japan expansions lag in yield maturity. Facing Samsung and Intel’s aggressive 2nm roadmaps, TSMC locks in NVIDIA and Broadcom via a ‘technology-capacity-client’ triad, creating an ecosystem moat. Over the next 18 months, AI inference migration to edge devices will ignite secondary demand for mature-advanced nodes (7nm/5nm), a tailwind TSMC’s capex strategy is already positioned to capture.