Analysts revise price targets for the world's most important company

Core Viewpoint - Taiwan Semiconductor Manufacturing (TSM) is positioned as a critical player in the semiconductor industry, potentially undervalued despite its significant market share and revenue growth [1][3]. Market Position and Financials - TSM is projected to capture 66% of the pure-play foundry market by 2025, serving major tech companies like Apple, Nvidia, and AMD [1]. - TSM's revenue for 2024 is estimated at nearly $90 billion, with a current market capitalization of $741.12 billion, contrasting sharply with Nvidia's $60.9 billion revenue and $2.66 trillion market cap [3]. Stock Performance - TSM stock is trading at $172.17, reflecting a 12.82% decline year-to-date [4]. - Analysts are increasingly optimistic about TSM shares, with several Wall Street firms revisiting their outlooks [4]. Analyst Ratings and Price Targets - Bernstein analyst Mark Li maintains an 'Overweight' rating with a price target of $251, indicating a potential 45.78% upside [5]. - Bank of America analyst Brad Lin reiterates a 'Buy' rating with a price target of $265, suggesting a 53.91% upside from current prices [6]. Revenue Growth and Investment - TSM's revenue in February 2025 showed a year-over-year growth of 43.1%, despite an 11.3% sequential decline [6]. - The company announced a $100 billion investment in the United States, which has raised some concerns about IP leakage and profit margins, yet the overall outlook remains bullish [7]. Valuation Metrics - TSM stock is currently trading at 21.3 times forward earnings, which is considered an attractive ratio for a leading semiconductor producer [8].