Taiwan Semiconductor (TSM) Stock: Wall Street Raises Price Targets as Shares Hit Record Highs

TLDR

• Goldman Sachs raised TSMC price target 35% to NT$2,330, sparking a 6.9% rally on January 5
• JPMorgan increased target to NT$2,100, projecting 30% revenue growth in 2026 from AI demand
• Six brokerages have upgraded TSMC price targets since January 1, 2026
• Stock gained 8% year-to-date and 44% in 2025, pushing market cap past $1.4 trillion
• December quarter earnings on January 15 expected to show 18% revenue growth and 50%+ margins

TSMC stock surged to record highs in early January as Wall Street analysts raced to raise price targets. The chipmaker’s shares jumped 6.9% on January 5 after Goldman Sachs increased its forecast.

Taiwan Semiconductor Manufacturing Company Limited, TSM

Goldman Sachs lifted its TSMC price target to NT$2,330 from NT$1,730. The 35% increase reflects growing confidence in AI-driven chip demand.

JPMorgan followed on January 7 with a target increase to NT$2,100. That represents a 24% jump from the previous NT$1,700 forecast.

Six Firms Upgrade TSMC Stock Outlook

At least six brokerages have raised TSMC price targets since the new year began. Macquarie Group joined Goldman Sachs and JPMorgan in boosting forecasts.

JPMorgan analyst Gokul Hariharan expects strong revenue expansion ahead. The firm projects 30% USD revenue growth for TSMC in 2026.

Goldman Sachs analysts called AI “a multi-year growth engine” for the company. Profit margins are improving despite plans to spend $150 billion on capacity expansion through 2028.

TSMC stock has climbed 8% since January 1. Shares gained 44% throughout 2025, pushing market capitalization above $1.4 trillion.

The three-year performance shows even stronger gains. TSMC stock has tripled in value since early 2023.

Q4 Earnings Expected to Show Strength

TSMC reports December quarter results on January 15. Analysts polled by Bloomberg expect revenue rose 18% year-over-year.

Operating margins are forecast to exceed 50% for the quarter. That would mark the highest level in three years.

JPMorgan cited several factors supporting margin expansion. Higher chip yields, expedited wafer orders, and favorable currency rates should all contribute.

The investment bank projects over 20% revenue growth in 2027 as well. Tight capacity in advanced chip nodes should sustain demand.

TSMC produces chips for Nvidia and Apple among major tech companies. Its advanced manufacturing makes it essential to AI infrastructure buildout.

Semiconductor Sector Shows Broad Strength

Asian chip stocks rallied during early January trading. Samsung Electronics extended gains to five straight sessions ahead of preliminary earnings.

Tokyo Electron and Advantest each jumped more than 7% on January 5. Chinese semiconductor stocks also climbed on positive industry news.

TSMC accounts for nearly 45% of Taiwan’s Taiex index weighting. The benchmark recently crossed 30,000 for the first time.

After four days of gains, TSMC stock fell 2.4% on January 7. The pullback appeared to be profit-taking following the strong rally.

Asian tech hardware stocks trade at 16 times forward earnings versus 25 times for the Nasdaq 100. The valuation gap suggests relative value in the region.

Bernstein analysts recommended investors “focus on quality” despite bubble concerns. For advanced semiconductors, “capacity from TSMC is the king,” analyst Mark Li noted.

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