Nvidia, Apple Supplier TSMC Stock Surges In Pre-Market After Morgan Stanley Raises Price Target Ahead Of Earnings. This means that the company that makes chips for Apple and Nvidia, called TSMC, is doing really well. Morgan Stanley, a big bank, thinks TSMC will do even better in the future. So, they raised their price target for TSMC, which means they think the stock will be worth more. That's why TSMC's stock price went up in the pre-market, before the regular market opens. Read from source...

the narrative on Nvidia, Apple Supplier TSMC Stock Surge, authored by Benzinga Neuro, presents an irrational and overly optimistic argument. It portrays the chipmaker TSMC as on the cusp of a massive market capitalization milestone while displaying an obvious conflict of interest, as TSMC shares are heavily held by Apple Inc. (AAPL) and Nvidia Corp. (NVDA), both of whom are its major customers. Morgan Stanley, one of the brokers that raised the price target on TSMC, is committing a grave error in predicting future sales forecasts and wafer price increases. The use of the term 'hunger marketing' in reference to TSMC's strategy is totally misplaced and demonstrates a complete lack of understanding of the company's business model.

Furthermore, the narrative displays a selective focus on TSMC's strong performance due to demand for AI applications, while ignoring the larger context of the global semiconductor market. The article does not adequately consider the potential risks and challenges TSMC could face in the future, such as supply chain disruptions, production issues, and unforeseen market changes.

AI has no personal opinions or emotional attachment to the subject matter. The aim is to provide accurate and balanced information to the reader, without any preconceived notions or biases.

bullish

The article reports a surge in pre-market trading for TSMC, following Morgan Stanley's decision to raise the chipmaker's price target. This increase is anticipated to continue as TSMC is predicted to raise its full-year sales forecast in its upcoming earnings report. Morgan Stanley and JPMorgan join other brokers in expressing optimism about TSMC. The company's strong performance is backed by a high demand for AI applications, which has driven its expansion into AI and 2nm technology. The article overall showcases a positive outlook for TSMC.

1. Nvidia and Apple Inc. supplier, TSMC, has seen a surge in pre-market trading after Morgan Stanley raised its price target ahead of earnings. TSMC's shares in Taipei have experienced a year-to-date rally of over 75%. Morgan Stanley has raised its target by roughly 9%, predicting that TSMC will raise its full-year sales forecast due to robust bargaining power and effective "hunger marketing" strategy.

2. Analysts expect TSMC's leading-edge foundry supply could be tight in 2025, and customers may not get sufficient capacity allocation without recognizing TSMC's value. TSMC is set to reach the $1 trillion market capitalization mark, fueled by a stock rally and potential price increases.

3. TSMC's growth is propelled by the rising demand for AI-related products, making it a key player in the trillion-dollar club.

4. The company's expansion into AI and 2nm technology has been a key growth driver, as noted by UBS.

Risks:

1. The semiconductor market is known for being volatile, and events such as inventory shortages and changes in consumer demand can impact TSMC's performance.

2. Morgan Stanley and other brokers' predictions are based on their analysis and assumptions and could differ from the actual earnings report, impacting TSMC's stock value.

3. TSMC's supply chain and manufacturing processes could face challenges due to geopolitical tensions, disruptions in global trade, or natural disasters, which can impact the company's production capacity and sales.