Bank of America sees more than 30% upside ahead for this derivative play post-Nvidia earnings

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Bank of America sees more than 30% upside ahead for this derivative play post-Nvidia earnings
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Another blowout quarter from artificial intelligence giant Nvidia should bode well for shares of this derivative play, according to Bank of America.

Analyst Brad Lin lifted his price target on U.S-listed shares of Taiwan Semiconductor Manufacturing to $125, representing 35% upside from Thursday's close. He cited "sustainable and strong" demand for AI products, which should meaningfully benefit the leading AI chipmaker and maker of edge nodes and advanced packaging.

" So far this year, shares of Taiwan Semiconductor have jumped about 23%, while Nvidia shares have more than doubled. Lin views Taiwan Semiconductor's valuation as attractive at nearly 14 times price-to-earnings, and near the lower end of its historical range.

 

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