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Goldman Sachs Raises TSMC Price Target to NT$3,300 Ahead of Earnings
Electronic Technology · Semiconductors · economic_daily · 2026-10-06
2330
As TSMC's earnings call approaches, major investment banks have raised their price targets, citing robust AI-driven demand and strong growth prospects.
What Happened
Analyst Upgrades: Ahead of the upcoming earnings call, major investment banks have raised their price targets for TSMC, with Goldman Sachs setting a target of NT$3,300 and Morgan Stanley adjusting theirs to NT$3,088. Analysts remain bullish, citing the broad-based demand for AI GPUs, ASICs, and server CPUs as key drivers for long-term growth.
Growth Outlook: Morgan Stanley expects TSMC's revenue to grow by 40% to 45% this year, fueled by strong demand for 3nm technology. Goldman Sachs forecasts that dollar-denominated revenue will see significant year-over-year growth in 2026 and 2027, noting that the company will likely remain in a supply-constrained environment despite aggressive capacity expansion.
Capital Expenditure: To support advanced process manufacturing, TSMC is expected to ramp up capital spending significantly, with Goldman Sachs projecting expenditures to reach $85 billion in 2027 and $98 billion in 2028. By the end of 2027, the company is expected to reach monthly capacities of 200,000 wafers for N3 and 140,000 for N2 processes.
Key Conference Focus: Investors are closely watching for updates on three critical areas: the expansion strategy for U.S. facilities, the status of Intel's outsourcing plans, and the company's advanced packaging capabilities for large TPU chips. TSMC's stock continues to hit record highs, underscoring its role as the primary engine for the broader Taiwan market.