Goldman raised TSMC's target price by 35%. Shares have risen the most since April.

Shares of Taiwan Semiconductor Manufacturing, the world's largest contract semiconductor manufacturer, posted their best one-day gain since April during trading on January 5, rising nearly 7% at one point. The reason was a revision of Goldman Sachs' forecast: it raised its target price for TSMC shares by 35%, pointing to steady demand for AI chips. The company plays a key role in the artificial intelligence boom, with many global chip manufacturers relying on its contract manufacturing services, Bloomberg notes .

Taiwan Semiconductor Manufacturing Co. (TSMC) shares rose the most since April, with the price rising 6.9% at its peak during the day. The shares set a new record on the Taiwan Stock Exchange in Taipei. At the close of trading, the shares were up 5.4%.

The growth followed Goldman Sachs raising its target price for shares of a key supplier of AI chips to Nvidia and Apple by 35% to 2,330 Taiwanese dollars (about $74), Bloomberg reports . This implies a 40% increase from Monday's closing price.

"We view artificial intelligence as a long-term growth driver for TSMC," Goldman analysts noted. According to bank expert Bruce Liu, the company's margins continue to improve despite plans to invest approximately $150 billion in expanding production capacity over the next three years.

On Monday, TSMC became one of the key drivers of growth in Asian technology stocks: investors continue to actively invest in the AI sector, despite fears of it overheating, Bloomberg notes. This segment once again contributed the most to the growth of regional markets — the fear of missing out on further gains outweighed the short-term risks of volatility amid US strikes on Venezuela.

TSMC shares also pushed Taiwan's Taiex index up more than 3% to a record high of over 30,000 points. This milestone "seemed almost impossible" not long ago, said Taiwan's Deputy Minister of Finance Huang Jing-hua. However, given the chipmaker's dominant position, the authorities still hope for a "more balanced structure" of the stock market, he added.

TSMC shares rose 44% in 2025, bringing the company's market capitalization to over $1 trillion. Investors are now awaiting TSMC's financial results, which are expected on January 15.

"TSMC is the undisputed leader in the advanced power semiconductor segment," analysts at Sanford C. Bernstein & Co note in a Bloomberg report. According to them, the current year "continues to be entirely defined by AI," and investors should "bet on quality" amid growing concerns about a bubble forming.

Another short-term driver for the AI sector as a whole could be the revitalization of capital markets, primarily in China: according to Bloomberg data, around 11 companies linked to artificial intelligence are planning to list their shares in Hong Kong this month, hoping to raise up to $4.1 billion.

This article was AI-translated and verified by a human editor