Taiwan Semiconductor rose more than 1.3% in pre-market trading. Morgan Stanley raised the target price of TSMC and reiterated its "overweight" rating

Taiwan Semiconductor's pre-market stock price rose by more than 1.3% to $177.1. On the news front, Morgan Stanley released a research report pointing out that Taiwan Semiconductor's expansion of 2-nanometer and 3-nanometer chips and CoWos advanced packaging capacity is growing rapidly, with CoWos monthly capacity expected to increase to 80,000 units next year. Morgan Stanley mentioned that the management had mentioned at a brokerage conference that the company may be able to maintain a directionally compound annual growth rate of between 15% and 20% over the next 5 years. They believe that this commitment to long-term growth, coupled with gross margin expansion, makes the company more attractive in valuation compared to other Asian semiconductor companies. The bank raised the group's earnings forecasts for next year and 2026 by 4% and 5% respectively, with the target price raised from NT$1,220 to NT$1,280, reiterating an "overweight" rating as the top pick in the industry, citing optimism about the company's quality and defensive nature in the extended semiconductor downturn cycle