TSMC stock price target raised by UBS to NT$1,700 on strong AI demand

Published 16/10/2025, 15:52
TSMC stock price target raised by UBS to NT$1,700 on strong AI demand

Investing.com - UBS raised its price target on Taiwan Semiconductor Manufacturing Company (NYSE:TSM) to NT$1,700.00 from NT$1,570.00 on Thursday, while maintaining a Buy rating on the stock.

The price target increase follows TSMC’s upward revision of its full-year sales growth guidance to mid-30% in U.S. dollar terms and an increase in its capital expenditure forecast to US$40-42 billion.

TSMC reported a third-quarter gross margin of 59.5%, significantly exceeding UBS’s estimate of 57.5%, which the firm attributed to cost reduction measures and improved utilization rates. The chipmaker guided for fourth-quarter gross margin to remain strong at 60.0% at the midpoint.

For the fourth quarter, TSMC projected a 1% quarter-over-quarter decline in sales at the midpoint, which UBS noted was roughly in line with buy-side expectations of flat sequential performance.

TSMC plans to announce its 2026 guidance during its mid-January earnings call, with UBS suggesting management appears optimistic about Cloud AI demand and expecting potential upside to sales, margin, and capital expenditure outlook from 2026 onward.

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