Goldman Sachs Raises TSMC 12-Month Target Price to NT$3,300 and Increases CapEx Forecast

Goldman Sachs raised its 12-month target price for TSMC from NT$3,100 to NT$3,300, implying approximately 28% upside based on the October 5 closing price of NT$2,575. The firm expects TSMC's growth momentum to remain strong next year as demand for GPUs, network chips, and server CPUs continues to rise driven by artificial intelligence. In its report, Goldman analysts noted, 'Notably, AI agents are driving increased CPU demand, a key shift observed over the past year.' Goldman forecasts TSMC's revenue in U.S. dollars will grow 42% and 36.9% year-over-year in 2026 and 2027, respectively, with gross margins of 67.2% and 67.5%. The firm also raised its capital expenditure forecasts for 2027 and 2028 from $78 billion and $82 billion to $85 billion and $98 billion, anticipating further capacity expansion to support customers' longer-term needs. Goldman maintains a 'Buy' rating on TSMC. (Caixin News Agency)