Investors looking to bet on the artificial intelligence boom may want to take a look at Taiwan Semiconductor Manufacturing , according to JPMorgan. Analyst Gokul Hariharan reiterated his overweight rating on the semiconductor maker, a supplier to chip majors such as Nvidia , Advanced Micro Devices and Qualcomm , saying that “all roads in AI semis lead” to the company. TSM YTD mountain Taiwan Semiconductor shares since the start of 2024 “TSMC remains one of the cheapest large-cap semi stocks globally, still trading at a ~30% discount to the SOX index and a ~51% discount to the large-cap AI semis basket (Nvidia, AMD, Broadcom, Marvell),” he said, adding that this gap should close as the company’s position as a “key AI enabler becomes more established.” The firm retained its NT$850 price target on Taiwan-listed shares, representing about 9% upside going forward. U.S-listed shares of the company have surged about 35% in 2024 and 51% over the past year. Within the next three to four years, Hariharan expects Taiwan Semiconductor to maintain its greater-than 90% market share of AI-connected processor silicon. That should nearly quadruple its AI contribution to revenues from 6% in 2023 to 27% by 2027. By 2026, he forecasts the company’s revenues can hit $119 billion, driven by robust growth in high-performance computing as AI training and inference demand grows. A solid setup for the company’s 3 nanometer process technology for chipmakers such as Nvidia should also benefit revenues. “TSMC’s moat in AI semis appears wider than in previous product cycles, due to leading process technology, tightly integrated packaging methods, and support from the broadest IP and design service ecosystem in the semi-industry,” Hariharan said.
Sumber: www.cnbc.com