NEW GROWTH DRIVER: Analysts said they expected TSMC’s revenue to increase 16 percent year-on-year next year, with the fourth quarter likely to be the peak again
Taipei Times
Date: Dec 16, 2019
By: Chen Cheng-hui / Staff reporter
Macquarie Capital Ltd has raised its 12-month target price for shares of Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) by 10 percent to NT$385, up from NT$350, on the back of a positive long-term outlook for the chipmaker.
The new target price implies a 13.6 percent upside from the stock’s closing price of NT$339 in Taipei trading on Friday. TSMC shares have surged 50.33 percent this year.
The Australian brokerage said that TSMC is expected to report strong revenue in the first quarter of next year, driven by rising demand for chips made using its 7-nanometer (nm) process for Apple Inc’s iPhone 11 series and the iPhone SE 2.
The second quarter of next year would likely be a transition period to the next-generation iPhone — for which application processor shipments would start in the third quarter — becoming a potential low point for TSMC, Macquarie said in a research note on Friday. [FULL STORY]