TSMC's stock price reached a record high on Monday (July 8th) following Morgan Stanley's target price adjustment and optimistic forecasts from multiple brokerages.

Last Sunday (July 7th), Morgan Stanley raised the stock's target price by about 9% and predicted that the chip manufacturer will raise its full-year sales expectations in next week's earnings announcement. The bank also believes that TSMC has the ability to raise wafer prices due to its strong bargaining power.

Morgan Stanley analysts, including Charlie Chan, wrote in a report that "TSMC's 'hunger marketing' strategy seems to be working. Our latest supply chain check shows that TSMC is sending a message that leading foundry supply may become tight by 2025, and that customers may not be able to get enough capacity allocation if they do not accept TSMC's value."

Analysts at JPMorgan, including Gokul Hariharan, also expect the company to raise its revenue expectations during the earnings call. In a report on Sunday, Hariharan wrote, "We expect TSMC's comments on AI accelerator demand to be more constructive."

In addition, brokerages such as Nomura Holdings and Mizuho Securities are also optimistic about TSMC's upcoming second-quarter results. The company's Q2 2024 corporate briefing will be held on Thursday, July 18th, 2024.

According to market analysts, the world's most advanced chipmaker is expected to see a year-on-year revenue growth of 36% in the second quarter, the fastest pace since Q4 2022.

The optimistic profit sentiment has driven the company's Taipei stock price to break through NT$1,000 (about $31) per share last week, making it the eighth largest company in the world with a market cap of over $950 billion.

On Monday, TSMC's stock price rose as much as 4.5% in Taipei, reaching a high of NT$1,050 per share, and closed at NT$1,035. So far this year, its increase has exceeded 75%.