Bank of America has revised upwards its target price for TSMC to $260 for US shares and NT$1,280 for Taiwan shares, while maintaining a 'Buy' rating. Despite the potential short-term impact of the appreciating New Taiwan dollar on gross margins, TSMC's long-term growth trajectory remains steadfast. The company is projected to report second-quarter revenue of $30.1 billion, accompanied by a gross margin of 57.1%. Key areas of focus encompass AI demand, advancements in advanced packaging technologies, progress on the 2nm process, and investment plans in the United States.

While earnings forecasts for the years 2025-2027 have been marginally adjusted downwards due to exchange rate fluctuations, the outlook for advanced process price hikes and product mix optimization remains upbeat. It is anticipated that advanced process prices will escalate by 7% to 9% in 2026, which is expected to contribute to a resurgence in gross margins.