TechFlow News, July 17, according to "STAR Market Daily", Morgan Stanley issued a report stating that TSMC's full-year 2026 revenue guidance is significantly better than expected. The company raised its 2026 revenue growth guidance to a year-over-year increase of over 40%, previously over 30%. Management attributed the raise to strong AI demand, despite challenges in consumer demand. Cloud Service Providers (CSP) customers are rapidly increasing cloud capital expenditure.
TSMC did not update its AI semiconductor revenue CAGR forecast, but stated that actual performance is higher than the previous 55%-60% forecast. The firm believes a 70% to 80% CAGR for TSMC's AI semiconductor business is a reasonable assumption. The firm raised its target price from 2,888 New Taiwan Dollars to 2,988 New Taiwan Dollars, maintaining an "Overweight" rating. In a volatile market environment, the company's robust profitability should continue to attract capital inflows. Next, the cloud capital expenditure updates for the second quarter of 2026 announced by CSP customers will be an important catalyst.
