TSMC (TSM, Financial) saw its stock rise nearly 3%, reaching a peak of $205.75. This increase follows a research report from Bank of America Securities, which maintains a "buy" rating for the company. Despite market concerns about DeepSeek's pricing strategy and potential U.S. tariff policies, the report underscores the robust trend in AI development that continues to favor TSMC as a primary supplier of key AI chips.
The report also highlights that potential tariff increases in the U.S. could exert cost pressures across the supply chain. However, TSMC is expected to mitigate these risks by expanding its global presence, ensuring flexibility in its supply chain. Bank of America has set a target price of $265 for TSMC's stock.
