DA Davidson Assigns TSMC (TSM) a Buy Rating Amid AI Demand Growth

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) ranks among billionaire Stanley Druckenmiller’s 10 best stock picks. On February 12, DA Davidson began coverage of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), issuing it a Buy rating and a $450 price target. The firm stated that the company’s “compounding execution moat in leading edge manufacturing” results in a “durable, self-reinforcing advantage” as interest in artificial intelligence processing grows.

Taiwan Semi’s competitive edge, according to DA Davidson, comes from its capacity to “repeatedly industrialize architectural transitions into predictable, high volume platforms,” pointing out that consumers ultimately choose timely delivery of products at a reasonable cost.

Although rivals can match specific characteristics “on paper,” the firm states that Taiwan Semi’s advantage lies in its capacity to transform new devices and power architectures into “high yield, high throughput manufacturing with validated enablement and predictable ramps.”

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a leading Taiwanese semiconductor manufacturer. The company’s core offerings include wafer fabrication, mask manufacturing, and engineering support services.

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Disclosure: None. This article is originally published at Insider Monkey.