Goldman Sachs Raises TSMC Price Target to NT$3,300 on Sustained AI Demand

Goldman Sachs raised its price target on TSMC (2330-TW, TSM-US) to NT$3,300 from NT$3,100, maintaining a "Buy" rating and lifting capital expenditure estimates, citing expanding AI demand. Analyst Evelyn Yu said AI demand is spreading across GPUs, networking chips and server CPUs, with agentic AI driving stronger CPU demand — a key shift over the past year. Goldman estimates TSMC's revenue will grow 42% year-over-year in 2026 and 36.9% in 2027 in dollar terms, with gross margins of 67.2% and 67.5%, respectively. It raised 2027 and 2028 capex forecasts to $85 billion each, from $78 billion and $82 billion. TSMC shares and its U.S. ADR rose after reports it is in talks to partner on Elon Musk's Terafab chip manufacturing project. Musk confirmed discussions are underway but said no deal is finalized. Analysts expect TSMC and Intel (INTC-US) may each take on portions of the large project.