Needham analyst Charles Shi reiterated a Buy rating and $270.00 price target on Taiwan Semi (NYSE: TSM)

The analyst comments: "TSMC delivered another strong beat-and-raise quarter, and raised FY25 revenue growth outlook from 24-26% to ~30%. Key points: 1) Following a strong 18% QoQ growth in Q2 (vs. 13% QoQ guidance), TSMC sees another 8% QoQ growth in Q3 (vs. prior implied guidance of ~flat QoQ); 2) TSMC remains cautious on macro uncertainties and implied guidance for Q4 represents HSD% decline QoQ; 3) TSMC hints that they are working on 2026 pricing increases, potentially offsetting FX induced GM dilutions; 4) TSMC has not received a signal from Nvidia to resume H20 production but sees strong AI upside due to access to China; 5) TSMC signals continued CapEx growth going forward but hints at lower capital intensity going forward. Our estimates are updated for FY25 and slightly tweaked for FY26. Our PT remains $270. Reiterate Buy."

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Shares of Taiwan Semi closed at $237.56 yesterday.