CoWoS production capacity is expected to exceed expectations, and Morgan Stanley maintains its "overweight" rating on TSMC.

J.P. Morgan maintains its "overweight" rating on TSMC, with a price target set at NT$1275. The bank pointed out that TSMC's CoWoS production capacity is expected to reach 95,000 wafers per month by the end of 2026, further increasing to 112,000 wafers per month by the end of 2027, significantly higher than previous expectations. J.P. Morgan stated that this expansion is mainly due to the planned capacity construction of the AP8 factory and the continued growth in demand from key customers such as NVIDIA, Broadcom, and AMD.