TSMC price target raised to NT$1,370 by Goldman Sachs on AI demand

Published 17/07/2025, 17:18
TSMC price target raised to NT$1,370 by Goldman Sachs on AI demand

Investing.com - Goldman Sachs has raised its price target on TSMC (NYSE:TSM) to NT$1,370.00 from NT$1,210.00 while maintaining a Conviction Buy rating following the company’s second-quarter analyst meeting on Thursday.

The investment bank cited TSMC’s increasingly positive outlook on advanced node demand, with artificial intelligence customers showing no signs of demand slowdown. Goldman Sachs now expects revenue contribution from the N2 node to be significantly higher compared to N3 at the initial ramp-up stage, particularly in the first two years.

TSMC management has raised its 2025 revenue guidance to "30% YoY" growth, up from the previous forecast of "mid-20%s YoY," reflecting stronger demand outlook across its business segments.

Despite facing tight capacity for N5/N3 nodes, TSMC’s capital expenditure strategy remains focused on future expansion for the most advanced nodes rather than greenfield expansion for older nodes, according to Goldman Sachs.

The company plans to meet stronger customer demand for N5/N3 through productivity improvements such as node conversion from N7 to N5 and N5 to N3, while also raising wafer revenue forecasts for N5/N3 due to continuous demand strength from AI and high-performance computing segments.

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