Goldman Sachs lifts TSMC target as AI and advanced-packaging demand broadens
The brokerage increased its earnings forecasts for the world's biggest contract chipmaker by 2%-6% for 2025-27 after boosting projected wafer revenue from 3-nanometre and 5-nanometre production. It now expects TSMC's dollar revenue to grow roughly 29% next year and 17% in 2026.
Goldman sees limited risk of further reductions in orders for AI processors, citing improved supply-chain coordination between TSMC and server builders. At the same time, it said more smartphone, server and networking customers are adopting CoWoS – a chip-on-wafer packaging technique that allows multiple chips to be combined inside a single module, helping diversify demand.
The brokerage lifted its CoWoS shipment estimates to 664,000 wafers in 2025 and 1.56 million in 2027, and raised its capital-expenditure forecasts to US$42 billion for 2026 and US$50 billion for 2027 to reflect faster capacity expansion.
Goldman also expects TSMC to impose another round of price increases on its most advanced manufacturing nodes and packaging services in 2026, supported by tight supply and limited competition.
TSMC's Taipei-listed shares were last at NT$1,070, about 13% below the new target, while its New York-listed ADRs traded around $222.18 in afternoon trading on Wednesday.
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