U.S. stocks fluctuated tonight, with the Dow Jones Industrial Average slightly down, while the Nasdaq and S&P 500 indices hit new highs during trading.
Nvidia's stock price increased by 2%.
TSMC continued its "surge," with shares rising nearly 5% in the early trading session. It's noteworthy that TSMC's market value in the U.S. stock market broke through the trillion-dollar mark for the first time during trading, once again making history, before the gains retreated to around 3%. Data shows that TSMC's stock price has risen by over 84% this year.
Before this, investment banks such as Morgan Stanley raised their target stock price for the company before it announced its performance. In early June, TSMC surpassed Berkshire Hathaway to become the world's eighth most valuable company. As the sole supplier of the most important chips for Apple and Nvidia, TSMC is the most favored by global artificial intelligence investors.
Many Wall Street brokers have raised their target stock prices for TSMC, citing a surge in demand related to artificial intelligence, and TSMC's products may increase in price by 2025 to improve profits.
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Currently, excluding TSMC, there are seven U.S.-listed companies with a market value of over $1 trillion, namely Microsoft, Apple, Nvidia, Google, Amazon, Saudi Aramco, and Meta.
Macquarie Securities pointed out in its latest report that, according to supply chain data, most of TSMC's customers have agreed to increase contract manufacturing prices in exchange for reliable supply, which will drive TSMC's gross margin to climb further. Analysts estimate that TSMC's gross margin will rise to 55.1% by 2025; it will reach 59.3% by 2026.
Industry insiders say that this price increase may be based on market demand, production capacity, and cost considerations. There is news that Apple, Qualcomm, Nvidia, and AMD, the four major factories, have heavily booked TSMC's 3nm family process capacity, and a customer queue has emerged, all the way to 2026.
On July 7th, Morgan Stanley raised its target price for the stock by about 9%, and expects the chipmaker to raise its full-year sales forecast in next week's earnings announcement. The investment bank also believes that, given TSMC's strong bargaining power, it has the ability to raise chip prices.
Morgan Stanley analysts, including Charlie Chan, wrote in a report that TSMC's "scarcity marketing" strategy seems to be working. The latest supply chain checks indicate that TSMC is conveying a message that leading contract manufacturing supply in 2025 may be tight, and if customers cannot accept TSMC's prices, they may not be able to obtain enough production capacity allocation.Morphic's Stock Soars by Over 75%
Another focus in tonight's US stock market is the American biopharmaceutical company Morphic, whose stock price has skyrocketed by 75%.
In terms of news, the biopharmaceutical giant Eli Lilly officially announced that it will acquire Morphic for $57 per share in cash, which is 79% higher than last Friday's closing price. This transaction is expected to be completed in the third quarter.
The deal has been approved by the boards of directors of both companies and is not subject to any financing conditions.
Analysis suggests that Eli Lilly's main intention for the high premium acquisition of Morphic may be to increase its investment in the IBD (Inflammatory Bowel Disease) field. It is reported that Morphic is a biopharmaceutical company developing oral integrin therapies, and its major project is a selective oral α4β7 integrin small molecule inhibitor for the treatment of inflammatory bowel disease, which has the potential to improve patient outcomes and expand treatment options.
