Goldman Sachs Raises TSMC Price Target, Bullish on Strong AI-Driven Growth

Goldman Sachs raised TSMC's target price and capital expenditure forecasts due to continued expansion in AI demand across GPUs, networking chips, and server CPUs. Analyst Evelyn Yu noted that "stronger CPU demand driven by agentic AI is a key change over the past year." Goldman Sachs expects TSMC's 2026/2027 revenue to grow 42.0%/36.9% year-over-year, with gross margins of 67.2%/67.5%, respectively; it also raised its 2027/2028 capital expenditure forecasts from $78 billion/$82 billion to $85 billion/$98 billion to support long-term customer demand. Maintains "Buy" rating, raising the target price from NT$3,100 to NT$3,300.