Goldman Sachs Raises TSMC Target Price to 3,300 NTD on Strong AI Demand
Goldman Sachs has raised TSMC's 12-month stock price target from 3,100 NTD to 3,300 NTD, indicating a potential 28% upside after the chipmaker hit record highs on the Taiwan stock exchange. The upgrade is driven by surging demand for AI hardware, particularly GPUs, networking chips, and server CPUs. The financial revision highlights how the AI boom is expanding beyond specialized GPUs to boost demand for server CPUs needed for orchestration in agentic AI workflows. It also signals long-term confidence in TSMC's market dominance and continuous capital investments through 2028. Goldman Sachs projects TSMC's USD revenue to grow 42% year-over-year in 2026 and 36.9% in 2027, with gross margins exceeding 67%. Additionally, the firm raised TSMC's capital expenditure forecasts for 2027 and 2028 to $85 billion and $98 billion, respectively.
## BACKGROUND
TSMC (Taiwan Semiconductor Manufacturing Company) is the world's largest dedicated semiconductor foundry, fabricating advanced chips designed by major tech companies like Nvidia, AMD, and Apple. While artificial intelligence workloads traditionally center on GPUs for heavy mathematical calculations, modern agentic AI applications require server CPUs to handle task management, API tool calls, and execution logic.