PRE-MARKET TAIWAN AND SINGAPORE STOCKS NEWS: TSMC (2330 TT) and Synopsys (SNPS) partnered to accelerate AI systems innovation using agentic AI and advanced design technologies

BNP Paribas upgraded Synopsys (SNPS) to Neutral with a $420 price target, citing improved fundamentals. GF Value™ estimates SNPS is 37.0% undervalued at $414.43 vs. $657.46 intrinsic value. SNPS has a GF Score™ of 90/100, strong growth, and profitability but moderate financial strength. Insider selling totaled $48.2M over 12 months. Upcoming investor day on September 30 may provide further clarity.

Taiwan Semiconductor (TSM) plans to raise wafer prices 3%-6% in 2027, with higher increases for advanced processes. Demand extends to 2030, driven by AI-related components. Rival foundries may follow. TSM shares closed at $446.57, down 1.2%.

Apple has exclusively secured TSMC's 2nm N2 node for its A20 Pro chip, featuring Gate-All-Around transistors. The chip offers 30% better power efficiency and 15% speed boost, enabling advanced AI. TSMC's 2nm technology uses a GAA nanosheet design, reducing electrical leakage. The A20 Pro will be in the iPhone 18 Pro, with high production costs estimated at USD 30,000 per wafer.

Micron confirmed TSMC will manufacture base dies for its next-gen HBM, joining SK Hynix and Samsung in outsourcing. This shift is driven by HBM's evolution toward customer-specific solutions, with TSMC gaining influence. Citi projects 62% HBM demand growth next year, citing robust AI memory demand.

TSMC's stock rose 0.4% in overnight trading after its CFO commented on strong multi-year demand and increased U.S. investment. The company plans to invest $265 billion, up from $165 billion, with $100 billion allocated to Arizona operations. TSMC's Q2 revenue increased 38% to NT$1.27 trillion, and profit rose 77% to NT$706.56 billion, beating estimates. Despite this, shares have declined 18% from their June 30 peak.

Synopsys (SNPS) shifted its earnings call focus from past issues, like China's export restrictions and IP business underperformance, to new growth areas like Multiphysics Fusion with Ansys and agentic AI. Design Automation grew to $7.7-7.9B, while Design IP remained at $1.8B. Management expects new initiatives to boost EDA growth in 2027, but Design IP's turnaround is based on a single quarter of growth.