Goldman Sachs delivered one of Wall Street’s most aggressive endorsements for Taiwan Semiconductor Manufacturing Company, hiking its price target by 35% to NT$2,330 and reiterating a conviction buy rating. TSMC shares surged as much as 6.9% to record highs.
The investment thesis is direct: artificial intelligence demand is accelerating, and TSMC is the sole manufacturing gateway. Revenue growth estimates for 2026 and 2027 were revised to 30% and 28%, up from 22% for both years. Earnings estimates saw a 9% to 15% lift, driven by extremely tight capacity utilization at the company’s 3-nanometer and 5-nanometer nodes. These advanced processes power critical AI hardware for clients including Nvidia and Apple.
To relieve the bottleneck, TSMC plans to deploy over $150 billion in capital expenditures between 2026 and 2028. Capacity is projected to remain constrained through 2027, supporting healthy pricing power. While execution risk and geopolitical concentration in Taiwan are noted structural vulnerabilities, Goldman views TSMC as the primary beneficiary of sustained AI infrastructure spending.