The Wall Street brokerage Bernstein has raised its target for TSMC (TSM.US) from $150 to $200. Analysts led by Mark Li pointed out that high-end smartphones and advanced nodes are driving TSMC to exceed its 2024 performance guidance target. Analysts said that AI revenue from data centers is growing as planned, but more data shows that AI is driving growth in smartphones, which is a surprise. Analysts also pointed out that TSMC's N3 and N5 capacity is now fully loaded. Analysts expect that TSMC's Q3 revenue guidance will exceed expectations, with full-year revenue (in USD terms) growing 25% and EPS growing 28%.

Analysts said that the continuous growth of advanced packaging CoWoS demand, the earlier-than-expected launch of Intel's Lunar Lake, and the possibility of rising prices for advanced nodes are expected to drive TSMC's revenue and EPS growth by 2025. Analysts believe that TSMC's revenue will increase by 20% and EPS will increase by 26% by 2025.

In addition, due to CoWoS investment, analysts slightly raised their capital expenditure forecast for TSMC in 2024, but maintained their forecasts for 2025 and 2026.