Goldman Sachs raised its 12-month price target for TSMC from TWD 3,100 to TWD 3,300 and sharply revised upward its capital expenditure forecasts for 2027 and 2028. The changes reflect expanding AI demand and upfront costs for the new Texas plant, with the higher price target and upgraded investment plans announced at the same time.
Goldman Sachs raised its 12-month price target for TSMC (2330.TW) from TWD 3,100 to TWD 3,300, indicating approximately 28% upside. The analysts maintained their Buy rating.
At the same time, it sharply revised upward its capital expenditure forecasts for 2027 and 2028, from $78 billion and $82 billion, respectively, to $85 billion and $98 billion. The revisions reflect cost inflation among equipment suppliers and upfront spending on the new plant in Texas.
The analysts said that Agentic AI is accelerating demand for server CPUs and that AI demand is expanding from GPU accelerators into CPUs and networking chips.
Mass production at the new Texas plant is expected to begin in or after 2032. Production capacity for the N3/N2 processes is expected to reach 200,000/140,000 wafers per month at the end of 2027 and expand to 220,000/200,000 wafers per month at the end of 2028.
Annual CoWoS production capacity is expected to increase from 675,000 wafers in 2025 to 2.73 million wafers in 2027 and 3.48 million wafers in 2028.