UBS Raises TSMC Price Target to NT$3,400 on Strong AI Chip Momentum and Pricing Potential
Growing global demand for generative AI and high-performance computing is concentrating advanced-chip orders at TSMC. As a major foundry partner to companies including NVIDIA and Apple, TSMC is running its advanced-process capacity at full utilization. Its pricing power and expansion progress have become key indicators for the global AI supply chain and Taiwanese equity valuations.
UBS sharply raised its TSMC price target to NT$3,400 in its latest report and reiterated its Buy rating, citing persistently strong momentum in AI chip demand. UBS also expects TSMC could begin another round of price increases in early 2027 to reflect cost pressures from advanced-process capacity expansion and higher capital expenditure.
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The history behind this eventStrong AI Demand Drives Capacity Expansion as Citi, Goldman Raise TSMC Price Targets
Global cloud providers are stepping up investment in AI infrastructure, boosting demand for TSMC’s 3-nanometer and 2-nanometer processes and CoWoS advanced packaging for high-performance computing chips. With capacity falling short of demand, the scale of TSMC’s expansion directly affects shipments by customers including Nvidia and AMD and has become central to Citi’s and Goldman Sachs’ reassessments of the chipmaker’s earnings and share price.
Reports released on July 6, 2026, showed Citi raising its TSMC price target to NT$3,800 from NT$2,875, while Goldman Sachs lifted its target to NT$3,000 from NT$2,750. Both maintained buy ratings. Citi estimates capital expenditure of $75 billion in 2027 and $80 billion in 2028, while Goldman forecasts $78 billion and $82 billion, respectively.
J.P. Morgan Raises TSMC Price Target to NT$2,400 on Strong AI Demand
TSMC is the global leader in advanced semiconductor processes and foundry services. Demand for AI accelerators and high-performance computing chips is driving growth in its advanced-node and advanced-packaging businesses. J.P. Morgan expects this demand to sustain strong revenue growth at TSMC in 2026 and 2027 while increasing the importance of capacity expansion over the medium to long term.
In its latest report, J.P. Morgan raised its price target for TSMC to NT$2,400 per share from NT$2,250, an increase of NT$150, or about 6.7%. The firm also sharply raised its forecast for TSMC's cumulative capital expenditure over the next three years, reflecting the need to keep expanding advanced-node and packaging capacity to meet rapidly growing AI and HPC orders in 2026 and 2027.
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