TSMC Capex Outlook Key to Next Phase of $340 Billion Stock Rally

  • Taiwanese chipmaker provides earnings, sales details Thursday
  • Demand and sales growth not priced in, Saxo Bank’s Garnry says

TSMC is seen as a prime beneficiary of the AI boom.

Photographer: Mike Kai Chen/Bloomberg
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With Taiwan Semiconductor Manufacturing Co. still trading at pedestrian valuations even after surging to a record high, there is potential for its upcoming results to drive the stock even higher.

Some market observers see a possibility that the world’s largest chip foundry will raise its revenue and capital expenditure forecasts for the year following its better-than-expected sales for the latest quarter. This would provide evidence that the strong growth fueled by artificial intelligence will be sustained.