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Macquarie Raises TSMC Price Target to NT$4,410 Ahead of Earnings Call
Electronic Technology · Semiconductors · economic_daily · 2026-10-07
2330
Macquarie Securities has set a new street-high target price for TSMC, citing strong 2nm production progress and robust AI-driven demand.
What Happened
Price Target Upgrade and Key Focus: Ahead of TSMC's upcoming earnings call on the 15th, Macquarie Securities has raised its target price to NT$4,410, the highest among analysts. Market participants are closely watching for guidance on Q4 gross margins, 2nm revenue contributions, and updates on global manufacturing facilities.
2nm Process and Margin Outlook: Analyst Lai Yu-chang highlights that TSMC's 2nm production is progressing faster than anticipated, which will help optimize fixed cost amortization. The strong pricing power of the 2nm process is expected to offset depreciation costs, leading to better-than-expected gross margins starting in the fourth quarter.
Impact of Global Expansion: The report suggests that the impact of overseas expansion on profit margins remains manageable in the short term. While the Arizona facility currently exerts some pressure on margins, the Texas plant is not expected to significantly impact profitability until around 2030, allowing TSMC to maintain its competitive edge.
Profit Growth Drivers: Driven by robust AI demand, TSMC is seeing a steady increase in average selling prices (ASP), which is expected to bolster long-term profitability. Consequently, Macquarie has upwardly revised its net profit forecasts for 2026 through 2028, reflecting confidence in the company's sustained growth trajectory.