TSMC shares jump the most since April after Goldman lifts target price 35%
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TSMC's market value surpassed US$1 trillion, reflecting investor confidence in its central position amid the AI boom, with many of the world’s chip firms relying on its foundry services.
PHOTO: BLOOMBERG
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- TSMC shares surged nearly 7% to a record high in Taipei, driven by AI optimism and a Goldman Sachs price target increase of 35%.
- Goldman Sachs analysts see AI as a "multi-year growth engine" for TSMC, projecting US$150 billion in capacity spending over three years.
- TSMC's market value surpassed US$1 trillion, reflecting investor confidence in its leading position in AI chip manufacturing, says Bloomberg.
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TAIPEI – Taiwan Semiconductor Manufacturing shares climbed by the most since April, as the world’s largest contract chipmaker rides a continued wave of optimism over artificial intelligence (AI) demand into the new year.
Shares of the key supplier to Nvidia and Apple jumped as much as 6.9 per cent to touch a new record high in Taipei. That came after Goldman Sachs Group raised its TSMC price target 35 per cent to NT$2,330, citing expectations of another year of solid growth.
TSMC helped lead a broad charge in Asian tech stocks on Jan 5 as investors plough more cash into the AI theme despite concerns of overheating. The sector was once again the biggest boost to regional equities as fear of missing out on further gains overcame concerns of short-term volatility in the wake of US strikes against Venezuela.
“We view AI as a multi-year growth engine for TSMC,” Goldman analysts including Mr Bruce Lu wrote in a report. Mr Lu noted that the company’s profit margins are improving, even as he projected it will spend US$150 billion (S$193 billion) over the next three years to increase capacity.
Among other chip stocks, South Korea’s Samsung Electronics extended gains to a fifth straight session. The memory-maker is expected to report preliminary results later this week that will provide further clues on whether earnings justify the sector’s big gains.
TSMC shares surged 44 per cent in 2025, pushing its market value above US$1 trillion for the first time. That reflects increased investor confidence in its central position amid the AI boom, with many of the world’s chip companies relying on its foundry services.
“For leading-edge semiconductor, capacity from TSMC is the king,” Sanford C. Bernstein & Co analysts including Mr Mark Li wrote in a note dated Jan 2. This year “is still all about AI”, though the analysts recommend investors “focus on quality”, given worries of a bubble. BLOOMBERG
