TSMC Shares Jump Most Since April After Goldman Lifts Target 35%
(Bloomberg) — Taiwan Semiconductor Manufacturing Co. Shares of the world’s largest contract chip maker rose the most since April on a continuing wave of optimism about artificial intelligence demand heading into the new year.
Nvidia Corp. and shares of Apple Inc.’s main supplier rose as much as 6.9% to a new record in Taipei. This comes after Goldman Sachs Group Inc. raised its price target on TSMC by 35% to NT$2,330, citing expectations for another year of strong growth.
TSMC led a big rally in Asian tech stocks on Monday as investors poured more money into its AI theme despite overheating concerns. The sector was once again the biggest supporter for regional stocks as fears of missing out on further gains overcame short-term volatility concerns following US attacks on Venezuela.
“We view AI as a multi-year growth engine for TSMC,” Goldman analysts including Bruce Lu wrote in a report. Lu notes that the company’s profit margins are increasing, even though it predicts it will spend $150 billion over the next three years to increase capacity.
Among other chip stocks, South Korea’s Samsung Electronics Co. also carried its rise to the fifth session in a row. The memory maker is expected to release preliminary results later this week, which will provide further clues as to whether earnings justify the sector’s big gains.
TSMC shares rose 44% in 2025, pushing its market value above $1 trillion for the first time. This reflects growing investor confidence in its centrality amid the AI boom, with many of the world’s chip companies relying on foundry services.
Sanford C. Bernstein & Co., including Mark Li. “For cutting-edge semiconductors, TSMC’s capability is paramount,” analysts wrote in a note Friday. This year is “still about AI,” although analysts recommend investors “focus on quality” due to bubble concerns.
–With help from Cindy Wang.
More stories like this available Bloomberg.com
