[TSMC Rated as Top Pick by Morgan Stanley]

Taiwan Semiconductor Manufacturing Company (TSM.N) has been named as the top pick by Morgan Stanley due to the bank's view that the company's valuation after recent weakness in its share price is highly attractive. Analyst Charlie Chan from the bank wrote, "We are bullish on TSMC's quality and defensive nature amidst a prolonged semiconductor downturn. Confirmation of price hikes and continued robust AI capital expenditures should be key catalysts." She also added that TSMC should be able to achieve a gross margin of over 55% by 2025 and gradually approach 60% in the 2028-2030 period after achieving economies of scale at its overseas fabs. Currently, TSMC's share price has declined by over 20% from its July peak.