
TSM Stock Forecast & Price Target
TSM Analyst Ratings
Bulls say
Taiwan Semiconductor Manufacturing Co. (TSMC) is poised for impressive financial growth, with management forecasting a long-term revenue compound annual growth rate (CAGR) approaching 20% and expecting total revenue growth of mid-20s percent in 2025, driven significantly by the surge in AI-related revenue. The company is also planning to increase its capital expenditures (CapEx) from approximately $30 billion in 2024 to a range of $38 billion to $42 billion in 2025, reflecting a strategic shift towards advanced packaging technologies, which are anticipated to outpace overall CapEx growth. Additionally, TSMC's strong market position and significant economies of scale in the foundry industry, combined with a robust customer base including major technology firms, reinforce a positive outlook for the company’s continued success.
Bears say
Taiwan Semiconductor Manufacturing Co. is facing a potential decline in key financial metrics, with estimates suggesting that the combined operating margin would fall to 35% if a merger is completed, compared to the current 50% margin of standalone TSMC. Additionally, the expected earnings per share (EPS) could be 20% lower in such a scenario, alongside predictions of non-AI revenue growth dropping to the low teens range for 2025. Furthermore, challenges related to capital expenditure management and capacity utilization present risks to TSMC's gross margins, with a 1% reduction in utilization expected to lead to a 40 basis points decrease in profitability.
This aggregate rating is based on analysts' research of Taiwan Semiconductor Manufacturing and is not a guaranteed prediction by Public.com or investment advice.
TSM Analyst Forecast & Price Prediction
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