Nomura Raises Targets for TSMC and Eight Other Taiwan Stocks on AI Chip Materials Demand

The AI boom is driving demand for advanced processes and packaging, prompting TSMC to continue expanding its advanced packaging capacity. Supply-chain attention is also gradually extending beyond wafer fabrication to substrates, equipment and packaging materials. Nomura Securities said this shift will be critical to future orders and earnings growth for Taiwanese semiconductor companies and is an important factor in valuing AI-related stocks.

Nomura’s latest report expects the AI semiconductor industry’s bottleneck to shift from TSMC’s capacity to peripheral materials by 2027, with supply-demand imbalances likely to prompt earnings upgrades for related companies. The brokerage reiterated its positive view of Taiwan’s AI supply chain and raised its target prices across the board for nine Taiwanese companies, including TSMC and MediaTek. The available event data did not specify the revised targets.