Bernstein analyst Mark Li said TSMC is on track to meet or even exceed their guided range for Q4 sales, but he thinks TSMC's Q1 revenue guidance may come below consensus given lighter iPhone 7 demand and seasonality. 10nm will begin emerge as the main growth driver for TSMC this year, as Apple may accelerate the transition from iPhone 7 to the next iPhone, making the ramp possibly very steep, added Li, who predicts that 10nm's contribution will rise quickly from 1-2% of TSMC's overall revenue in Q1 to 20-25% in Q4 of FY17. Li keeps a Market Perform rating and $32 price target on TSMC shares.

Argus raised the firm's price target on TSMC to $160 from $130 and keeps a Buy rating on the shares. The analyst cites the company's Q1 earnings and revenue beat, stating that while the stock sold off on cautious company guidance for industry demand growth in 2024, the firm still expects solid company growth as inflation recedes and electronic device demand picks up. Throughout a down 2023, demand for the company's 5nm products remained strong, and TSMC has successfully ramped 3 nm node products, the firm added.