NEW YORK (TheStreet) -- Taiwan Semiconductor (TSM) - Get Report shares are up 0.54% to $24.41 in trading on Tuesday, continuing to climb following yesterday's note from analysts at Cowen saying that the company will handle the bulk of the production of the computer chips for the next generation of the Apple (AAPL) - Get Report iPhone.

Their 16 nanometer transmitters make it the most attractive option to make Apple's A9 chip in 2015, according to the research note.

"We now believe that a combination of very good yield and very aggressive pricing has enabled TSMC to secure the majority of AAPL's A9 business for 2015," said the note. "As for TSMC, even accounting for 10nm development and other R&D projects, some of this more aggressive 16nm ramp plan had to be factored into TSMC's $11-12B capex guide for '15, but if we are right about 60k wsm being added, this alone will cost ~$10B suggesting that there could be some additional upside in capex from TSMC moving through the year."

TheStreet Ratings team rates TAIWAN SEMICONDUCTOR MFG CO as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

"We rate TAIWAN SEMICONDUCTOR MFG CO (TSM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• The revenue growth came in higher than the industry average of 10.6%. Since the same quarter one year prior, revenues rose by 34.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
• Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
• TAIWAN SEMICONDUCTOR MFG CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TAIWAN SEMICONDUCTOR MFG CO increased its bottom line by earning $1.61 versus $1.18 in the prior year. This year, the market expects an improvement in earnings ($1.81 versus $1.61).
• The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 75.2% when compared to the same quarter one year prior, rising from $1,318.53 million to $2,309.57 million.
• You can view the full analysis from the report here: TSM Ratings Report