TSMC Stock Climbs on Goldman Sachs 'AI Supercycle' Call
Shares approach 52-week high as analysts boost price target by nearly 40% and the chipmaker secures a key US export license for its China operations.
Shares of Taiwan Semiconductor Manufacturing Company (TSM), the world's most critical chipmaker, rallied in Tuesday trading, propelled by a significant price target hike from Goldman Sachs and positive news regarding the company’s operations in China.
The stock rose toward its 52-week high, with its market capitalization swelling to approximately $1.66 trillion. The move underscores investor confidence in the foundry's central role in the burgeoning artificial intelligence industry.
Driving the optimism is a bullish note from Goldman Sachs, which raised its price target on TSMC's Taiwan-listed shares to NT$2,330 from NT$1,720—an increase of nearly 40%. The investment bank cited a coming "AI-driven supercycle" as the primary catalyst. Analysts at Goldman pointed to a "multi-year growth engine" for the company, driven by surging demand for the advanced processors that power AI applications across the globe.
TSMC is the exclusive manufacturer of the world's most advanced semiconductors, producing the cutting-edge chips designed by technology giants like Nvidia, Apple, and AMD. The Goldman Sachs forecast effectively validates the view that as the AI boom continues, TSMC will be a primary beneficiary, translating high-end computing demand into robust revenue growth. The bank reportedly increased its 2026 and 2027 earnings estimates by as much as 15%.
Further bolstering sentiment, TSMC has secured a crucial annual export license from the United States government. This allows the company to continue importing American chipmaking tools for its fabrication plant in Nanjing, China. While the Nanjing facility focuses on mature 16-nanometer technology and, according to reports, contributed just 2.4% of TSMC's revenue in 2024, the license provides vital operational stability.
The approval removes a significant point of geopolitical uncertainty that has weighed on the stock. It signals a predictable framework for the chipmaker's China operations amid complex U.S. export controls aimed at restricting Beijing's access to advanced technology, allowing TSMC to maintain service for its existing clients from the facility.
Tuesday's stock gains pushed shares of TSMC, which trade on the NYSE, to over $322, nearing the 52-week peak of $331.25. The move reflects a broader conviction on Wall Street. Across 17 analysts, TSMC holds a strong consensus 'Buy' rating, with the average price target sitting around $356, suggesting further room for growth.
As the indispensable foundry behind the global tech ecosystem, TSMC's performance is a barometer for the entire industry. The company's massive investment in next-generation process nodes, such as 3-nanometer and the forthcoming 2-nanometer technology, is designed to maintain its competitive moat against rivals like Samsung and a resurgent Intel Foundry.
While the outlook appears bright, investors remain watchful of the complex geopolitical landscape surrounding Taiwan and the ever-present competitive pressures within the capital-intensive semiconductor industry. For now, however, the dual catalysts of a strong AI demand forecast and reduced operational risk have given investors ample reason for optimism.