---
title: "Morgan Stanley: Raises Taiwan Semiconductor's target price to NTD 1280, reiterates \"Overweight\" rating as top pick in the industry"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/215016053.md"
description: "Morgan Stanley raised Taiwan Semiconductor's target price to NTD 1280, reiterating an \"overweight\" rating, believing that the company will have a compound annual growth rate of 15% to 20% over the next 5 years against the backdrop of strong demand for AI semiconductors. It is expected that next year's capital expenditure will increase from USD 35 billion to USD 38 billion, and CoWos monthly capacity will increase to 80,000 units. The bank also raised its earnings per share forecasts for next year and 2026, believing that Taiwan Semiconductor has defensive and attractive qualities in the semiconductor industry"
datetime: "2024-09-24T03:12:22.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/215016053.md)
  - [en](https://longbridge.com/en/news/215016053.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/215016053.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/215016053.md) | [繁體中文](https://longbridge.com/zh-HK/news/215016053.md)


# Morgan Stanley: Raises Taiwan Semiconductor's target price to NTD 1280, reiterates "Overweight" rating as top pick in the industry

Morgan Stanley's research report pointed out that Taiwan Semiconductor is expanding its capacity for 2-nanometer and 3-nanometer chips and CoWos advanced packaging at a rapid pace to meet the strong demand for artificial intelligence semiconductors. The company is expected to increase its capital expenditure forecast for next year from USD 35 billion to USD 38 billion, with CoWos monthly capacity expected to increase to 80,000 units next year. Morgan Stanley mentioned that although the company has not provided formal guidance, management mentioned at a recent brokerage conference that the company may be able to sustain a compound annual growth rate of revenue between 15% and 20% directionally over the next 5 years. They believe that this committed long-term growth, coupled with gross margin expansion, makes the company more attractive in valuation compared to other Asian semiconductor companies. The bank raised the group's earnings per share forecast for next year and 2026 by 4% and 5% respectively, raising the target price from NTD 1,220 to NTD 1,280, reiterating an "overweight" rating as the top pick in the industry, optimistic about the company's quality and defensive nature in the extended semiconductor downturn cycle

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