Morgan Stanley raises TSMC target price

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Morgan Stanley analysts raised their target price for TSMC by 12% to NT$2,888, citing improved revenue and pricing outlook. The bank also expects the wafer foundry giant to raise its revenue and capital expenditure forecasts for this year during next month's earnings call. Given strong AI capital expenditure and chip demand, TSMC is expected to raise its 2026 revenue forecast to approximately 40% year-over-year growth and increase capital expenditure to $56 billion, reaching the high end of the previously expected range of $52 billion to $56 billion. Given TSMC's production scale, supply priority for EUV lithography technology, and process node leadership, the foundry competition between Samsung and Intel should not have much impact.
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