On Monday (August 5th), amidst the global stock market crash, TSMC's stock price also plummeted, hitting a low point in over two months. However, after this round of selling, Morgan Stanley believes that its stock price has become more attractive and has referred to it as the "preferred stock" of Morgan Stanley.
Morgan Stanley analysts Charlie Chan and others wrote in a report released on Monday, "We are optimistic about the quality and defensive nature of TSMC's stock during the long semiconductor downturn cycle
On Monday, TSMC closed down 9.75% in the Taiwan stock market and 1.27% in the US stock market. The stock recovered some of its losses on Tuesday. As of press time, TSMC's stock price closed up 7.98%, while the Taiwan Weighted Index (Taiex) closed up 3.38%.
It is reported that the current trading price of the stock is 16 times the expected return in 2025. For this valuation, analysts from Da Mo said that TSMC is "once again attractive".
Morgan Stanley also set TSMC's target price at NT $1220 per share, which is about 50% higher than Monday's closing price of NT $815 per share.
According to recent reports, sources have revealed that TSMC's 5/3nm process chips will not only increase in price in 2024. In late July, TSMC issued notices to multiple customers that due to rising costs, the prices of 5/3nm process products will be adjusted again from January 2025, with an increase of about 3-8% depending on the investment plan, product and cooperation relationship.
It can be seen that TSMC's 5/3nm process products will still be in high demand in the next one to two years. In the second quarter of this year, among all TSMC product lines, the revenue growth of 3nm process was the largest, achieving a month on month doubling growth.
According to TSMC's plan, more resources will continue to be directed towards advanced process production capacity and artificial intelligence products with strong demand. The demand for 3nm processes is very strong, and it is not ruled out that more 5nm processes will be converted to 3nm.