Morgan Stanley and Barclays raised their price targets for Taiwan Semiconductor Manufacturing Co. Analysts cited a robust outlook for revenue and pricing. Surging demand for artificial intelligence chips drives this growth.

Morgan Stanley increased its price target by 12%. The new target for the stock is NT$2,888. Analysts expect TSMC to raise revenue and capital expenditure guidance at its next earnings call.

Barclays maintained an Overweight rating on the company. The firm describes TSMC as a prime investment opportunity in the AI sector.

TSMC shares fell approximately 1% in pre-market trading. This pullback follows a rally that brought the stock near its 52-week high. Traders likely engaged in profit-taking after recent gains.