Renews Record Highs for Several Days

TSMC's stock price continues to rally.

While the stock price of TSMC, the world’s number-one semiconductor foundry company continues to renew record highs, some analysts forecast that it may rise 50 percent more from the current level.

Taiwan Focus said on Jan. 21 that Aletheia Capital, a Hong Kong-based investment advisor, recently suggested 1,000 Taiwanese dollars as TSMC's target stock price. It is about 48.6 percent higher than the current stock price of 673.00 Taiwanese dollars.

The bullish forecast is based on TSMC’s cooperation with Intel. News reports say that TSMC will be able to secure large orders for ultra-micro products from major customers. TSMC prepares commercial production using a 3-nm technology staring from 2022, and Intel is one of the companies expected to outsource chip production to TSMC. Qualcomm is another potential customer.

TSMC’s stock price continues to renew record highs. It rose 60.12 percent in 2020. It has gained about 27 percent since the beginning of 2021. Many analysts say that the rally is driven by earnings exceeding market expectations and large-scale facility investment plans. On top of that, foreign securities companies raised TSMC’s target prices, which also contributed to the rise of the stock price.

On the other hand, the rally of Samsung Electronics, which is considered the arch rival of TSMC, seems to have lost steam compared to the beginning of 2021. As a result, Samsung Electronics’s stock price has recently fallen to around 80,000 won after surpassing 90,000 won last week. Samsung vice chairman Lee Jae-yong was sent back to prison, sparking off a significant drop in the stock price.

However, the stock price of Samsung Electronics began to rebound two days ago. On Jan. 21, it closed at 88,100 won, 1.03 percent up from the previous day. Stock market watchers attributed the rebound to the news reports that Samsung Electronics signed a big foundry contract with Intel. Many industry insiders believe that the stock price of Samsung Electronics will be able to reach 100,000 won. The consensus target price of Samsung Electronics is estimated at 102,125 won, FnGuide says.

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