Goldman Sachs target lift powers TSMC stock to record high as AI trade accelerates

Investors piled into chipmakers after a dramatic Goldman Sachs upgrade to TSMC stock underscored how central the Taiwanese giant has become to the global AI boom.

Goldman Sachs upgrade sparks record move in TSMC

Taiwan Semiconductor Manufacturing Co. shares jumped in Taipei after Goldman Sachs Group Inc. raised its price target by 35% to NT$2,330, sending the stock to a new all-time high. Moreover, the move highlighted how aggressively investors are seeking artificial intelligence exposure at the start of the year, according to Bloomberg.

TSMC’s stock rose as much as 6.9% in Taipei trading in its biggest single-day advance since April. The company is a crucial supplier to both Nvidia and Apple, cementing its role at the heart of the high-end semiconductor and AI supply chain.

Chip stocks across Asia ride the AI wave

The sharp rally in TSMC also lifted broader Taiwanese equities. Taiwan’s Taiex index climbed more than 3%, breaking above the 30,000 level for the first time. That said, the index’s heavy dependence on a single heavyweight chipmaker is drawing official attention.

Juan Ching-hwa, Taiwan’s deputy finance minister, told lawmakers the index level “seemed almost impossible” until recently. However, he added that there are hopes for a more balanced market structure over time, given TSMC’s significant weight in the benchmark.

Goldman analysts led by Bruce Lu argued in a report that AI will act as a multi-year growth engine for TSMC. They highlighted improving profit margins and forecast that the company will spend $150 billion over the next three years to expand production capacity, underscoring a major semiconductor capacity expansion cycle.

Regional chipmakers gain on AI optimism

Elsewhere in Asia, chip names also advanced as capital flowed into the sector on expectations of sustained AI-related demand. In South Korea, Samsung extended gains to a fifth straight session, with investors awaiting preliminary results due later this week for signs that earnings justify the recent share price strength.

In Japan, shares of Tokyo Electron and Advantest each surged by more than 7% during Monday’s session. Moreover, Chinese chip stocks climbed after the country’s integrated circuit investment fund increased its stake in Semiconductor Manufacturing International, signaling continued state support for the domestic semiconductor ecosystem.

The rally across the region also drew support from comments by DeepSeek, which pointed to a more efficient method for training artificial intelligence models. That said, investors are still watching whether earnings can sustain these rapid valuation gains in chip stocks Asia wide.

TSMC’s trillion-dollar valuation and Wall Street views

Even before the latest surge, shares of TSMC had already rallied 44% through 2025, lifting its market capitalization above $1 trillion for the first time. The milestone reflected rising investor confidence in its dominant position in the global chip supply chain, as many semiconductor firms rely on its advanced foundry services.

Analysts at Sanford C. Bernstein, led by Mark Li, wrote that “for leading-edge semiconductor, capacity from TSMC is the king.” Moreover, they emphasized that this year “is still all about AI,” while urging investors to remain selective and focus on quality names due to potential bubble risks in overheated segments.

Bernstein reiterated an Outperform rating on Taiwan Semiconductor Manufacturing Company Limited and set a price target of $330 for its New York-listed shares. Separately, analysts at Bank of America raised their target to $360, citing a strong conviction in the company’s artificial intelligence growth path and robust demand outlook.

Upcoming earnings and valuation context

TSMC is scheduled to report earnings on January 15, an event seen as a key near-term focus for investors assessing whether the recent tsmc stock rally is justified by fundamentals. However, secondary factors such as capital market activity may also influence sentiment in the sector.

Around 11 AI-related companies plan to list in Hong Kong this month, with potential proceeds of up to $4.1 billion, according to Bloomberg. Moreover, the wave of listings underlines how deeply the AI narrative is shaping financing conditions and investor appetite across the region.

An Asia-wide regional gauge of tech hardware stocks currently trades at about 16 times forward earnings estimates. That compares with roughly 25 times for the Nasdaq 100, suggesting a still-wide valuation gap even after the recent AI-driven re-rating.

In summary, Goldman Sachs’s aggressive target hike, broad-based AI enthusiasm and heavy capital spending plans have pushed TSMC and regional chipmakers to new heights, while upcoming earnings and listing activity will test how durable this momentum really is.