Wall Street sets TSM stock price for the next 12 months

Taiwan Semiconductor Manufacturing Company (NYSE: TSM) experienced a notable uptrend following the Biden administration’s announcement of financial backing, totaling up to $11.6 billion. 

This support aims to bolster TSM’s chip production in the U.S., with a substantial portion, up to $6.6 billion, allocated as grants. Coupled with loans and tax credits totaling $5 billion, TSM commits to investing $65 billion in American operations, according to a Bloomberg report on April 8.

Additionally, J.P. Morgan, an American financial institution specializing in banking and asset management, raised its price target on TSM stock. This adjustment reflects the company’s leadership in the booming AI chip market, which is expected to account for 25% of TSM’s sales by 2027. 

With both government backing and a strong position in AI, the future looks bright for TSM.

TSM stock price analysis

At the press time, the stock price sat at $142.79, reflecting a 1.01% gain for the day. This adds to recent gains of 1.74% over the past five days and 2.71% for the month. Even more impressive is the stock’s 60.46% surge in the last six months.

This bullish trend is fueled by several factors, including a significant funding boost from the US government to build chip factories in Arizona and analyst confidence in TSM’s dominance within the booming AI chip market.

Wall Street weighs in on TSM stock

Based on insights from eight Wall Street analysts who have provided 12-month price targets for Taiwan Semiconductor Manufacturing over the last three months, the average price target stands at $154.14. 

These forecasts range from a high of $188.00 to a low of $125.00. With the average price target indicating a 7.95% change from the last recorded price of $142.79.

Additionally, all eight analysts recommend buying TSM stock, with no “hold” or “sell” recommendations, according to TipRanks data on April 9. This strong analyst sentiment further reinforces the bullish outlook for TSM.