Though currently not as prominent a name as Nvidia (NASDAQ: NVDA), the Taiwan Semiconductor Manufacturing Company (NYSE: TSM) has been a pivotal player in the ongoing artificial intelligence (AI) boom and an indispensable element of the broader technology sector.
The importance of the firm – notable as the manufacturer supplying the likes of Nvidia, Advanced Micro Devices (NASDAQ: AMD), Apple (NASDAQ: AAPL), and many others – has been again proven with the release of its revenue data for the month of April.
Compared to April of 2023, TSMC recorded a staggering revenue growth of 60%, making approximately $7.2 billion.
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Although this rise is well-reflected in the growth of TSM shares, as they are up nearly 70% on the NYSE and about 60% in the Taiwanese stock market in the last 52 weeks, such figures raise the question of how much higher they can rise and – given the wider trends seen among big tech firms – when it may hit the milestone price of $200.
When TSM stock could hit $200
Despite TSMC’s impressive performance and the string of news hinting that things will only get better, reaching $200 per share remains a tall order for the company.
Indeed, at the time of publication, TSM’s average 12-month price target stands at $162.64, which, while a substantial 13.90% above the press time prices, remains a far cry from $200.
Still, given that the highest target at the time of publication stands at $183 and that it was assigned by Goldman Sachs (NYSE: GS) prior to the latest revenue figures – which are likely to drive positive momentum – and before Apple announced its latest AI-focused iPad, it is likely that the subsequent target revisions could forecast a significantly bigger surge for TSMC.
Despite this, while an eventual rise to and above $200 is more than likely should the current technology boom continue, it is unlikely TSM will reach the coveted price before the end of 2024.
On the other hand, both the 18-month rise of Nvidia, and the 2024 rise of Super Micro Computer (NASDAQ: SMCI) demonstrate that vast and rapid surges are more than possible for companies in the sector, particularly on the news as positive as those pertaining to TSMC.
TSM stock price chart
The notion that a surge toward the press time high estimates near $180, or possibly above, might be in the cards is reinforced by TSM stock’s immediate reaction to the April figures, given the shares rapidly rose 3.11% in the extended trading session.
The movements also come in stark contrast to TSM’s latest performance as, after closing at $142.79 following a 0.56% drop during the day, TSMC price today, at the time of publication, stands at $147.23.
Finally, the extended trading also offers a break from the monthly decline of 2.35% – and it has, indeed, already erased the 30-day losses – and a return to the previous trend, which saw TSM shares rise 40.64% since the start of 2024.
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