The new price target for TSMC is set at NT$1,080, which represents around 17% potential upside from the current levels. Morgan Stanley analysts said the adjustment reflects the anticipated higher demand for Apple (NASDAQ: AAPL )'s AI chips in cloud servers and edge devices, such as iPhones. In the near term, TSMC could face margin pressures in the second half of 2024 due to the dilution of margins from Apple's 3nm wafer. Moreover, there is a potential for a month-over-month sales decline in June as non-AI demand remains weak.