Morgan Stanley Backs TSMC as "Top Pick" After Record Plunge

Despite a record drop in share price, Morgan Stanley analysts recommend Taiwan Semiconductor Manufacturing Co. (TSMC) as a top pick, citing its quality and defensive strength in a declining semiconductor market. They find the current valuation attractive, with the stock trading at 16 times its 2025 earnings estimates. After Monday`s drop, TSMC`s stock rebounded as much as 7.1% on Tuesday.