TSMC Shares Hit Record High as Goldman Sachs Raises Price Target on AI Demand Outlook

Taiwan Semiconductor Manufacturing Co. (TSMC) shares surged to a fresh all-time high after Goldman Sachs significantly raised its price target on the world’s largest contract chipmaker, citing sustained capacity tightness and powerful demand driven by artificial intelligence. The upgrade highlights growing confidence that TSMC will remain a key beneficiary of long-term AI, data center, and high-performance computing investment.

Goldman Sachs lifted its target price on TSMC (TW:2330) to NT$2,330 from NT$1,720 and reiterated its “conviction buy” rating. According to the brokerage, rapid expansion in AI-related computing and exponential growth in token consumption are fundamentally reshaping global semiconductor demand. This shift is expected to keep silicon demand ahead of supply well into 2027, reinforcing TSMC’s leadership in advanced chip manufacturing.

Following the announcement, TSMC’s Taipei-listed shares jumped as much as 7%, reaching a new record high of NT$1,695. The stock has gained more than 40% so far in 2025, extending a strong rally that has seen shares hit consecutive record levels over the past two sessions. Investor sentiment has been buoyed by renewed optimism around AI spending and expectations that chipmakers will disproportionately benefit from accelerating investments in data centers and high-performance computing from 2026 onward.

Goldman Sachs also revised its long-term outlook for TSMC’s capital expenditure, forecasting that the company will deploy more than $150 billion between 2026 and 2028 to meet structural demand. The bank expects continued tightness in advanced-node wafer capacity, particularly in 3-nanometre and 5-nanometre processes, through 2026 and 2027. This capacity constraint is seen as supportive of pricing power and margins.

In addition, Goldman raised its revenue growth estimates for TSMC in U.S. dollar terms, projecting 30% growth in 2026 and 28% in 2027, up from previous forecasts of 22%. The revised outlook underscores the belief that AI-driven semiconductor demand will remain a powerful tailwind for TSMC’s earnings and valuation in the years ahead.