Goldman Sachs raises TSMC target price to NT$3,300 on AI-driven demand
In short
Goldman Sachs raised its 12-month target price for TSMC to NT$3,300 from NT$3,100 and maintained a “buy” rating, citing growing AI demand for GPUs, networking chips and server CPUs. The bank also raised its 2027 and 2028 capital expenditure forecasts for TSMC to USD 85bn and USD 98bn, from USD 78bn and USD 82bn. TSMC shares closed at a record NT$2,575 on Oct 5, up 3%.
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Goldman Sachs raised its 12-month target price for TSMC to NT$3,300 from NT$3,100 and kept its “buy” rating, according to reports by CLS, IT Home and 36Kr citing the brokerage. IT Home said the new target implies about 28% upside from the Oct 5 closing price of NT$2,575. [ 1 , 2 , 3 ]
The bank said TSMC’s growth momentum should stay strong as artificial-intelligence demand expands for GPUs, networking chips and server CPUs. Goldman analysts wrote that stronger CPU demand driven by AI agents was a key change over the past year, a quote carried by all three documents. [ 1 , 2 , 3 ]
Goldman forecast that TSMC’s revenue in US dollars would grow 42.0% in 2026 and 36.9% in 2027, with gross margins of 67.2% and 67.5%. CLS gave the growth figures as 42.0% and 36.9%, while IT Home and 36Kr wrote 42% and 36.9%. The bank also raised its 2027 and 2028 capital expenditure forecasts for the company to USD 85bn and USD 98bn, from USD 78bn and USD 82bn, saying it expects TSMC to expand capacity investment further to support customers’ longer-term demand. [ 1 , 2 , 3 ]
The upgrade followed a record session for the shares. IT Home reported that TSMC hit an all-time high on the Taiwan stock market on Oct 5, touching NT$2,580 intraday before closing at NT$2,575, up 3%, with market value of about NT$66.78 trillion. 36Kr also cited the NT$2,575 closing price. [ 2 , 3 ]
The documents do not state when Goldman published the note, and none carries a comment from TSMC on the target price, the forecasts or its own capacity plans. [ 1 , 2 , 3 ]
Why it matters
The upgrade concerns TSMC, the chipmaker that supplies processors and accelerators underpinning the current AI build-out, so the raised capex and revenue forecasts are a signal on how far suppliers expect AI-related demand to run. The reaction on the Taiwan market — a record close, as reported by a tech outlet — shows investors pricing in that view. The documents do not give TSMC’s own response, so any operational effect remains a forecast by the brokerage rather than a confirmed company plan.
Key facts
- Goldman Sachs raised its 12-month target price for TSMC to NT$3,300 from NT$3,100, implying about 28% upside from the Oct 5 close of NT$2,575. [ 1 , 2 , 3 ]
- Goldman maintained its “buy” rating on TSMC. [ 1 , 3 ]
- Goldman expects TSMC’s US-dollar revenue to grow 42.0% in 2026 and 36.9% in 2027, with gross margins of 67.2% and 67.5% respectively. [ 1 , 2 , 3 ]
- Goldman raised its 2027 and 2028 capital expenditure forecasts for TSMC to USD 85bn and USD 98bn, from USD 78bn and USD 82bn. [ 1 , 2 , 3 ]
- Goldman analysts wrote that stronger CPU demand driven by AI agents was a key change over the past year. [ 1 , 2 , 3 ]
- TSMC shares closed at NT$2,575 on Oct 5, up 3%, with market value of about NT$66.78 trillion, after hitting NT$2,580 intraday. [ 2 , 3 ]
Confirmed by several sources
- Goldman Sachs raised its 12-month target price for TSMC from NT$3,100 to NT$3,300. [ 1 , 2 , 3 ]
- Goldman expects TSMC revenue in US dollars to grow 42.0% in 2026 and 36.9% in 2027, with gross margins of 67.2% and 67.5%. [ 1 , 2 , 3 ]
- Goldman raised its 2027 and 2028 capex forecasts for TSMC from USD 78bn and USD 82bn to USD 85bn and USD 98bn. [ 1 , 2 , 3 ]
- Goldman analysts cited stronger CPU demand from AI agents as a key change over the past year. [ 1 , 2 , 3 ]
- TSMC’s Oct 5 closing price was NT$2,575. [ 2 , 3 ]
Still unclear
- Whether the 42.0% 2026 growth figure in the earnings forecasts is a rounded 42% or a precise figure. One document gives 42.0% while two others give 42%; the difference is a rounding discrepancy in the source coverage.
- The date and the exact publication venue of the Goldman Sachs research note. The documents describe the report but do not state when it was published or where.
- Any comment from TSMC on the target price, capex forecasts or its own capacity plans. None of the documents include a statement from TSMC.
- The recorded intraday high of NT$2,580 and the record close are reported by a single outlet. Only one document carries the intraday level and market capitalisation detail.
What local media are saying
Timeline, local time
- TSMC closes at NT$2,575 on the Taiwan stock market, up 3% and a record high, after reaching NT$2,580 intraday; market value about NT$66.78 trillion. [ 2 , 3 ]
- CLS reports that Goldman Sachs raised its TSMC target price to NT$3,300 and its capex forecasts, citing AI-driven demand. [ 1 ]
- IT Home reports the same upgrade, noting about 28% implied upside from the Oct 5 close. [ 2 ]
- 36Kr carries the upgrade details, citing CLS. [ 3 ]