Goldman Sachs just handed TSMC one of the most aggressive endorsements on Wall Street, hiking its price target by 35% and reiterating a “conviction buy” rating on the world’s most important chipmaker. The new target of NT$2,330, up from NT$1,720, reflects a simple thesis: AI demand isn’t slowing down, and TSMC is the bottleneck everyone has to pass through.
TSMC shares responded accordingly, surging as much as 6.9% intraday to reach record highs. The broader semiconductor sector caught a tailwind too.
The numbers behind the conviction
Goldman’s analysts revised their revenue growth projections upward, now expecting TSMC to grow 30% in 2026 and 28% in 2027. Those figures replaced prior estimates of 22% for both years. Earnings estimates got a lift too, revised upward by 9% to 15%. The driving force behind all of this is capacity utilization at TSMC’s most advanced manufacturing nodes, specifically the 3nm and 5nm processes that power the AI chips everyone from Nvidia to Apple needs.
Those advanced nodes are expected to remain tight through 2027. To address this, TSMC is planning to deploy over $150 billion in capital expenditures between 2026 and 2028.
