Goldman Sachs ignites TSMC rally with 35% target raise, stock hits new peak

Taiwan Semiconductor Manufacturing Co. (TSMC) shares surged in Taipei after Goldman Sachs Group Inc. raised its price target by 35% to NT$2,330, pushing the stock to a fresh record. The rally is TSMC’s biggest single-day gain since April and came as investors kept chasing artificial intelligence exposure at the start of the year, according to Bloomberg.

TSMC’s stock climbed as much as 6.9% in Taipei trading, as Goldman pointed to expectations of another year of solid growth. As you should know, TSMC is a key supplier to Nvidia and Apple.

Asian chip stocks rise as AI demand pulls in capital

TSMC’s rally also helped push Taiwan’s Taiex up more than 3%, taking the index above 30,000 for the first time.

Juan Ching-hwa, Taiwan’s deputy finance minister, told lawmakers the level “seemed almost impossible” until recently, adding there are hopes for a more balanced market structure given the chipmaker’s weight in the index.

Goldman analysts, including Bruce Lu, said in a report that AI is a multi-year growth engine for TSMC, pointing out that profit margins are improving and predicting the company will spend $150 billion over the next three years to expand capacity.

Meanwhile this morning, Samsung also extended gains to a fifth straight session in South Korea, and the memory maker is expected to release preliminary results later this week, which investors are watching for signs that earnings support recent price moves.

In Japan, shares of Tokyo Electron and Advantest surged by more than 7% each during Monday’s session. Chinese chip stocks also gained after the country’s integrated circuit investment fund increased its stake in Semiconductor Manufacturing International.

The rally was supported by comments from DeepSeek, which flagged a more efficient way to train artificial intelligence models.

Wall Street raises targets as valuation gap stays wide

Shares of TSMC had seen a 44% rally through 2025, lifting its market value above $1 trillion for the first time. The rise showed growing investor confidence in its role within the global chip supply chain as many semiconductor companies rely on its foundry services.

Analysts at Sanford C. Bernstein, led Mark Li, wrote in a note on Friday that “for leading-edge semiconductor, capacity from TSMC is the king.” Mark added that this year “is still all about AI,” while urging investors to focus on quality due to bubble risks.

Mark then reiterated Bernstein’s Outperform rating on Taiwan Semiconductor Manufacturing Company Limited and set a price target of $330 for its New York-listed shares.

Separately, analysts at Bank of America raised their target to $360, citing a strong view on the company’s artificial intelligence growth path and demand outlook.

TSMC is going to report earnings on January 15, an event seen as a near-term focus for investors, along with capital market activity may also drive sentiment.

Around 11 AI-related companies plan to list in Hong Kong this month, with potential proceeds of up to $4.1 billion, according to Bloomberg.

Also, an Asia regional gauge of tech hardware stocks trades at about 16 times forward earnings estimates, compared with roughly 25 times for the Nasdaq 100.

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