© Reuters. Taiwan Semi (TSM) will be ‘back to strong growth in 2024’ – JPMorgan
JPMorgan released a note covering Taiwan Semi (TSM) on Thursday, saying it will be back to strong growth in 2024, while the Intel competition concerns are overstated.
Analysts, who have a Buy rating on the stock, raised the TSMC price target to NT$750 from NT$700.
The investment bank expects TSMC to bounce back to ~20% revenue growth in 2024, led by inventory restocking, strong AI demand, and the rapid expansion in N3.
“Looking ahead, we believe N3 is likely to drive strong growth into 2025, while early progress on N2 looks promising, despite market concerns about competition,” wrote the analysts.
While Intel competition has been weighing down the stock, JPMorgan’s analysis indicates Intel outsourcing to TSMC is likely to outweigh any market share Intel Foundry takes away from TSMC in the next three to four years.
“In the near-term, we expect TSMC to guide for 1Q24 revs to decline only 3-4% QoQ and indicate a healthy demand recovery at 2024 in its upcoming earnings conference, although GMs may remain under pressure due to higher depreciation costs, N3 dilution, and strong TWD,” added the analysts.
This story originally appeared on Investing
