TSMC Cements AI Foundry Lead With $165 Billion Phoenix Buildout as Buy Ratings Hold

Overview

• Bank of America maintained a Buy rating with a $360 price objective after October revenue reached about NT$367.47 billion, up 11.0% month over month and 16.9% year over year on mobile and high-performance computing strength.
• TSMC is building out U.S. manufacturing with a reported $165 billion investment in Phoenix, where the first fab began production in Q4 2024 and two more target volume output by 2028 and by decade end to address tariff exposure.
• Nvidia CEO Jensen Huang recently pressed TSMC to scale supply, underscoring the foundry’s critical role in meeting accelerating AI chip needs.
• As of mid-2025, TSMC controlled roughly 65% of global semiconductor manufacturing capacity and about 90% of advanced 3nm production.
• Shares are up nearly 48% year to date, with consensus Buy views persisting and analysts citing continued demand for GPUs and ASICs tied to cloud AI infrastructure.