TSMC's Positive Outlook: Sales Surge Expected Amid Rising AI Demand

Wall Street analyst Charles Shi increased his price target on Taiwan Semiconductor Manufacturing (TSMC) to $168, citing the company as "one of the best AI pick-and-shovel stories" with a potential 21% upside. Despite potential short-term production delays and inventory losses due to a recent earthquake in Taiwan, TSMC's Q1 results showed strong revenue and EPS growth, and Q2 forecasts suggest continued acceleration. With the increasing demand for processors supporting AI, TSMC presents an attractive investment opportunity, selling at a slight discount compared to the S&P 500.