Third time lucky? Citi changes its S&P target once more after index hits 6,000.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 09 2025
0mins
Should l Buy TSM?
Source: MarketWatch
S&P 500 Performance: The S&P 500 closed above the 6,000 mark last week, with a potential for a record territory if it advances another 2.4%.
Analysts Adjust Predictions: Following a 20.4% surge since mid-April, analysts are revising their S&P 500 targets for 2025 upwards after previously cutting them.
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Analyst Views on TSM
Wall Street analysts forecast TSM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSM is 313.46 USD with a low forecast of 63.24 USD and a high forecast of 390.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 330.730
Low
63.24
Averages
313.46
High
390.00
Current: 330.730
Low
63.24
Averages
313.46
High
390.00
About TSM
Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based integrated circuit foundry service provider. The Company is primarily engaged in integrated circuit manufacturing services. It offers advanced process technologies, specialised process solutions, advanced photomask and silicon stacking, and packaging-related technologies, while supporting a comprehensive design ecosystem. The Company's products serve diverse electronic sectors including artificial intelligence, high-performance computing, wired and wireless communications, automotive and industrial equipment, personal computing, information applications, consumer electronics, smart internet of things, and wearable devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Technology Upgrade: TSMC plans to build its second wafer fabrication plant in Kumamoto, Japan, to manufacture advanced 3nm chips, marking a significant advancement in its semiconductor manufacturing roadmap and aligning with Prime Minister Sanae Takaichi's technology ambitions.
- Increased Investment: The company is raising its total investment in the southern Japanese plant to ¥2.6 trillion ($17 billion), demonstrating strong confidence and long-term commitment to the semiconductor market in the region.
- Production Plan Adjustment: The original plan to produce 7nm chips by late 2027 has been upgraded to 3nm chips, reflecting TSMC's agility in responding to technological innovations and market demand changes.
- Market Impact: As a key chip supplier for Nvidia and Apple, TSMC's initiative will further solidify its leadership position in the global semiconductor industry and may accelerate the rapid development of related technologies.
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- Strong January Performance: The iShares Semiconductor ETF (SOXX) surged 12% in January, reflecting robust market confidence in the semiconductor sector, particularly driven by TSMC's earnings and soaring memory prices, highlighting the ETF's significance in diversified investments.
- Memory Price Surge: According to Trendforce, traditional DRAM prices are expected to rise by 90% to 95% compared to the previous quarter, while NAND flash prices are projected to increase by 55% to 60%, indicating strong demand from AI infrastructure development, further boosting stocks like Micron.
- TSMC Capital Expenditure Outlook: Although TSMC is not part of the SOXX ETF, its forecast for capital spending of $52 billion to $56 billion in 2026, a 40% increase from 2025, underscores the long-term growth potential of the semiconductor industry, attracting investor interest.
- Market Volatility and Outlook: Despite a 4.6% decline in SOXX in February, capital expenditure forecasts from major cloud companies have exceeded market expectations, suggesting that AI infrastructure development will continue to grow strongly in 2026, positioning semiconductor stocks to benefit from this long-term trend.
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- TSMC Market Dominance: Taiwan Semiconductor Manufacturing, controlling 72% of the market as the largest chip foundry, trades at a forward P/E of 24, yet analysts project a 25% annual growth over the next three to five years, highlighting its strong performance in the AI sector.
- Uber's Self-Driving Tech Development: Uber holds about 75% of the U.S. ride-sharing market and, despite competition from Waymo and Tesla, is developing self-driving technology in partnership with Nvidia, planning to deploy 100,000 autonomous vehicles, which could drive 22% annualized long-term growth.
- Attractive Market Valuations: Despite stock fluctuations, the current valuations of Netflix, TSMC, and Uber present investment opportunities under $1,000, particularly as the market approaches historical highs, indicating their long-term potential in their respective sectors.
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- Tech-Driven Growth: Walmart's push into online shopping and the Walmart+ subscription service led to a 27% increase in global e-commerce sales in the fiscal third quarter, enhancing customer experience and bolstering the company's long-term profitability.
- Potential Industry Leaders: JPMorgan Chase and Visa are seen as the next candidates for the trillion-dollar club, with market caps nearing $864 billion and $636 billion respectively, highlighting the stability and growth potential of the financial sector.
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- AI Factory Advantage: By providing complete AI factory solutions, including GPUs and networking components, Nvidia meets the demands of large data centers, further solidifying its leading position in the AI race and supporting future growth.
- TSMC's Market Dominance: Taiwan Semiconductor Manufacturing (NYSE:TSM) is the leading chip manufacturer, with nearly 32% revenue growth in 2025 and gross margins rising to 59.9%, highlighting its unique competitive advantage in AI chip production and its plans to expand capacity and raise prices.
- Capital Expenditure Plans: TSMC has ramped up its capital expenditure budget to build more chip manufacturing facilities and has laid out a four-year price hike schedule, ensuring profitability and market share in the context of ongoing growth in the AI market.
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- Key Stock Performance: Stocks like JPMorgan, Apple, and Boeing have entered buy zones, indicating strong market performance and potentially attracting more investor interest, which could further drive up their stock prices.
- Nasdaq Weakness: While the Nasdaq index is struggling, certain AI stocks are experiencing a revival, suggesting a divergence in tech stock performance that may present new investment opportunities for investors.
- Market Sentiment Shift: The Dow's breakthrough could shift market sentiment, drawing in more investors and impacting overall market liquidity and investment strategies, thereby further propelling economic recovery.
See More
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- Technology Upgrade: TSMC plans to build its second wafer fabrication plant in Kumamoto, Japan, to manufacture advanced 3nm chips, marking a significant advancement in its semiconductor manufacturing roadmap and aligning with Prime Minister Sanae Takaichi's technology ambitions.
- Increased Investment: The company is raising its total investment in the southern Japanese plant to ¥2.6 trillion ($17 billion), demonstrating strong confidence and long-term commitment to the semiconductor market in the region.
- Production Plan Adjustment: The original plan to produce 7nm chips by late 2027 has been upgraded to 3nm chips, reflecting TSMC's agility in responding to technological innovations and market demand changes.
- Market Impact: As a key chip supplier for Nvidia and Apple, TSMC's initiative will further solidify its leadership position in the global semiconductor industry and may accelerate the rapid development of related technologies.
See More
Semiconductor ETF Soars on AI Demand and Earnings Surge
- Strong January Performance: The iShares Semiconductor ETF (SOXX) surged 12% in January, reflecting robust market confidence in the semiconductor sector, particularly driven by TSMC's earnings and soaring memory prices, highlighting the ETF's significance in diversified investments.
- Memory Price Surge: According to Trendforce, traditional DRAM prices are expected to rise by 90% to 95% compared to the previous quarter, while NAND flash prices are projected to increase by 55% to 60%, indicating strong demand from AI infrastructure development, further boosting stocks like Micron.
- TSMC Capital Expenditure Outlook: Although TSMC is not part of the SOXX ETF, its forecast for capital spending of $52 billion to $56 billion in 2026, a 40% increase from 2025, underscores the long-term growth potential of the semiconductor industry, attracting investor interest.
- Market Volatility and Outlook: Despite a 4.6% decline in SOXX in February, capital expenditure forecasts from major cloud companies have exceeded market expectations, suggesting that AI infrastructure development will continue to grow strongly in 2026, positioning semiconductor stocks to benefit from this long-term trend.
See More
Three Growth Stock Investment Opportunities
- Netflix Acquisition Plan: Netflix plans to acquire Warner Bros. Studios, HBO, and HBO Max for $82.7 billion, which may strain cash flow and increase debt; however, this could enhance its content portfolio to attract 325 million global users, driving future growth.
- TSMC Market Dominance: Taiwan Semiconductor Manufacturing, controlling 72% of the market as the largest chip foundry, trades at a forward P/E of 24, yet analysts project a 25% annual growth over the next three to five years, highlighting its strong performance in the AI sector.
- Uber's Self-Driving Tech Development: Uber holds about 75% of the U.S. ride-sharing market and, despite competition from Waymo and Tesla, is developing self-driving technology in partnership with Nvidia, planning to deploy 100,000 autonomous vehicles, which could drive 22% annualized long-term growth.
- Attractive Market Valuations: Despite stock fluctuations, the current valuations of Netflix, TSMC, and Uber present investment opportunities under $1,000, particularly as the market approaches historical highs, indicating their long-term potential in their respective sectors.
See More
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- New Trillion-Dollar Member: Walmart officially surpassed a $1 trillion market cap on February 3, becoming the 13th publicly traded company globally to reach this milestone, showcasing its strong competitive edge and market influence in the retail sector.
- Tech-Driven Growth: Walmart's push into online shopping and the Walmart+ subscription service led to a 27% increase in global e-commerce sales in the fiscal third quarter, enhancing customer experience and bolstering the company's long-term profitability.
- Potential Industry Leaders: JPMorgan Chase and Visa are seen as the next candidates for the trillion-dollar club, with market caps nearing $864 billion and $636 billion respectively, highlighting the stability and growth potential of the financial sector.
- Economic Cycle Challenges: While Walmart's success is notable, fluctuations in the economic cycle may pose challenges to the growth of JPMorgan Chase and Visa, prompting investors to carefully assess the market environment's impact on financial stocks.
See More
Growth Stock Investment Opportunities: Nvidia and TSMC
- Nvidia's Strong Performance: Nvidia (NASDAQ:NVDA) achieved a remarkable 62% revenue growth last quarter, representing nearly a tenfold increase from three years ago, showcasing its robust performance in AI infrastructure and positioning it as a top long-term investment.
- AI Factory Advantage: By providing complete AI factory solutions, including GPUs and networking components, Nvidia meets the demands of large data centers, further solidifying its leading position in the AI race and supporting future growth.
- TSMC's Market Dominance: Taiwan Semiconductor Manufacturing (NYSE:TSM) is the leading chip manufacturer, with nearly 32% revenue growth in 2025 and gross margins rising to 59.9%, highlighting its unique competitive advantage in AI chip production and its plans to expand capacity and raise prices.
- Capital Expenditure Plans: TSMC has ramped up its capital expenditure budget to build more chip manufacturing facilities and has laid out a four-year price hike schedule, ensuring profitability and market share in the context of ongoing growth in the AI market.
See More
Dow Jones Surpasses 50,000 for the First Time
- Dow Jones Milestone: The Dow Jones Industrial Average has surpassed 50,000 for the first time, marking a significant recovery in the U.S. stock market and reflecting increased investor confidence in economic recovery, which may lead to more capital inflows.
- Key Stock Performance: Stocks like JPMorgan, Apple, and Boeing have entered buy zones, indicating strong market performance and potentially attracting more investor interest, which could further drive up their stock prices.
- Nasdaq Weakness: While the Nasdaq index is struggling, certain AI stocks are experiencing a revival, suggesting a divergence in tech stock performance that may present new investment opportunities for investors.
- Market Sentiment Shift: The Dow's breakthrough could shift market sentiment, drawing in more investors and impacting overall market liquidity and investment strategies, thereby further propelling economic recovery.
See More
