Several banks have raised their forecasts for TSMC, with one predicting growth of 42%.
Several brokerage firms, including Goldman Sachs, JPMorgan Chase, and Macquarie Group, have raised their forecasts for Taiwan Semiconductor Manufacturing Co (TSMC) shares since the beginning of the year, underscoring continued optimism about the world's largest contract chipmaker after its record growth, Bloomberg reports.
On January 7, TSMC shares fell 1.8% in Taiwan trading, cooling off somewhat after a four-day rally that pushed TSMC's market capitalization to a record $1.4 trillion, Bloomberg notes. So far in 2026, TSMC shares have already gained 8%. This rally has pushed Taiwan's benchmark stock index to a series of new highs, with TSMC accounting for nearly 45% of its weight, the agency notes.
What do analysts say?
— JPMorgan Chase raised its target price for TSMC shares by 23% to NT$2,100 ($67), citing expectations of strong revenue growth and improved profitability for the company. "We expect 2026 to be another year of solid growth for TSMC. Gross margins may also show an increase," wrote JPMorgan Chase analyst Gokul Harikrishnan, pointing to expanding demand for the company's chips and rising prices.
— Goldman Sachs raised its target price for TSMC shares by 37% to NT$2,330 ($74), Bloomberg reports. The bank also raised its target price for the company's American depositary receipts from $344 to $466, Barron's notes. This is 42.5% higher than their closing price on January 6. Goldman Sachs' valuation is among the highest on Wall Street, Barron's notes. "We see artificial intelligence as a multi-year growth driver for TSMC," Bloomberg quotes Goldman analysts, including Bruce Lu. He also emphasized that the company's margins are improving, despite his estimate that TSMC will invest about $150 billion over the next three years to expand its production capacity.
Of the 33 analysts covering the company's shares, only one is neutral and advises holding them in the portfolio. The rest recommend buying TSMC securities.
Context
TSMC is expected to release its fourth-quarter 2025 results next week, ending in December 2025. Analysts surveyed by Bloomberg expect the company's revenue to grow 18% compared to last year, with operating margins estimated to exceed 50% — a three-year high.
This article was AI-translated and verified by a human editor
