US Stock Market Move | Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) rose more than 3%. Morgan Stanley predicts that the company's gross profit margin will surpass 60% in the fourth quarter.

On Thursday, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) rose more than 3% to $286.17. According to reports, the mass production of Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's 2nm process will officially start at the end of this year. Currently, the production capacity of the 2nm process at two factories has been fully booked, and Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR needs to build new factories to meet customer demand. This project is expected to require an investment of $28.6 billion. It is reported that many companies, including Apple Inc., Qualcomm, MediaTek, AMD, are customers of Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's 2nm process. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR is struggling to meet the demand of all customers, with Apple Inc. currently securing more than half of the initial production capacity, while the remaining capacity is divided among other customers. According to the plan, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR aims to increase its monthly production to 100,000 units by the end of 2026. Morgan Stanley raised the target price of Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR from 1688 Taiwanese dollars to 1888 Taiwanese dollars. The bank believes that its revenue and profit margin have growth potential and recommends investors to increase their holdings in the stock before early 2026. It is expected that Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR will indicate revenue growth in the mid-20% range by 2026 and ultimately achieve a year-on-year growth of 30%. The company is also expected to surpass a 60% gross profit margin in the fourth quarter of 2025 and maintain it above 60% for the whole of 2026.