| TSMC (TSM) | $319.61 |
The world’s largest contract microchip maker TSMC (TSM) has broken its stock price record in trading today. It’s Taiwan traded share price jumped more than 5% in Asia to NT$1,670, or Taiwan dollars. One of the main factors attributed to this surge is a strong AI demand that has invigorated the market, highlighting the robust need in this area.
It’s New York-listed ADRs (American Depositary Receipts), which are much easier for UK investors to trade, are predicted to open 3% up at an all-time high $329 or so.
Moving the stock
Driving this latest stock spike was a note from investment banking giant Goldman Sachs. A analysts there upped their price target on Taiwan Semiconductor Manufacturing Company (it’s official name), citing sustained capacity tightness and demand in AI related sectors that remain robust, emphasizing AI’s growing influence.
Goldman Sachs told clients that exponential growth in token consumption was reshaping long-term semiconductor demand. That should reinforce TSMC’s position as a leader in high-performance manufacturing, especially with robust demand in AI influencing production needs.
TSMC shares have hit consecutive record highs in the last two sessions. The stock is being buoyed by renewed optimism around AI spending. There’s also greater expectation that chipmakers will benefit disproportionately from data center and high-performance computing investment in 2026 and beyond.
Raised growth forecasts
Goldman said it now expects TSMC to deploy more than $150 billion in capital expenditure between 2026 and 2028 to meet structural demand created by a robust AI market. The investment also forecast continued tightness in 3-nanometre and 5-nanometre wafer capacity through 2026 and 2027.
Goldman Sachs lifted its target price on TSMC to NT$2,330 from NT$1,720 and reiterated a ‘conviction buy’ rating. Rapid growth in AI-related computing is likely to keep silicon demand ahead of supply well into 2027, Goldman believes.
The bank also raised its revenue growth estimates in US dollar terms to 30% for 2026 and 28% for 2027, up from prior 22% forecasts, illustrating the robust demand in AI sectors.
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