TSMC's Taiwan stock hits a new high! Morgan Stanley: Under the "scarcity marketing" strategy, there will be a shortage of high-end foundry services by 2025

On the eve of the second-quarter financial report, Taiwan Semiconductor's stock price on the Taiwan Stock Exchange hit a new all-time high.

On Monday this week, driven by optimistic market expectations, Taiwan Semiconductor's stock on the Taiwan Stock Exchange continued its upward trend from last week, surging by 4.5% at one point during the trading session, ultimately closing up 3% at 1035 New Taiwan Dollars, expanding its year-to-date gain to 75%, reaching a record high.

According to analysts from several Wall Street investment banks, due to the ongoing global tightness in high-end wafer fabrication, Taiwan Semiconductor is expected to raise its full-year sales forecast in the financial report to be released next week.

Morgan Stanley has raised the company's target price by about 9% , with analyst Charlie Chan stating in a report on Sunday:

Taiwan Semiconductor's "hunger marketing" strategy seems to be working.

Our latest supply chain checks indicate that Taiwan Semiconductor is conveying a message that there may be tightness in high-end wafer fabrication by 2025.

If customers do not accept Taiwan Semiconductor's prices, they may not receive sufficient capacity allocation.

Morgan Stanley, JP Morgan, Nomura Holdings Inc., Mizuho Securities Co., and other investment banks are all bullish on Taiwan Semiconductor's second-quarter performance. According to data compiled by Bloomberg, the market currently expects Taiwan Semiconductor's second-quarter revenue to grow by 36% year-on-year, the fastest pace since the fourth quarter of 2022.