Analyst Charlie Chan named Taiwan Semiconductor Manufacturing a "catalyst driven idea" whose shares could rally given its role as the sole supplier for Nvidia's artificial intelligence graphics processing units.
The stock has served as the stock market's AI poster child in 2023, surging more than 215%.
As a supplier to Nvidia, Taiwan Semiconductor has also benefited from the buzz around AI, with its U.S.-listed shares up more than 24% this year.
Morgan Stanley regards Nvidia's October revenue guidance as a "key check point" pointing to AI-fueled semiconductor demand at Taiwan Semiconductor, as well as the growth of its Chip on Wafer on Substrate capacity supply, a vital part of the chip manufacturing process.
Chan anticipates a 5% uptick in Taiwan Semiconductor shares should Nvidia exceed consensus October revenue guidance, and come in above $13 billion.
Persons:
Morgan Stanley, Charlie Chan, Chan, — CNBC's Michael Bloom
Organizations:
Nvidia, Taiwan Semiconductor Manufacturing, Taiwan Semiconductor
Locations:
2023e