tsmc stock target soars amid ai chip demand

2025-07-02 tsmc

taipei, Wednesday, 2 July 2025.
analysts are betting big on taiwan semiconductor manufacturing. fueled by the ai boom, the company’s stock price target has been raised. needham analyst charles shi boosted the target to $270 from $225, foreseeing revenue jumping from $87.9 billion in 2024 to a staggering $160 billion in 2027. this surge is driven by ai chips, with revenue projected to hit $46 billion in 2027. tsmc’s ambition to reach $90 billion in ai chip revenue by 2029 might even be conservative, according to shi.

capex investments

To meet its ambitious AI chip revenue goals, TSMC is expected to ramp up its capital expenditure [1]. Needham forecasts capex increasing from $40 billion in 2025 to $45 billion in 2026 and $50 billion in 2027 [1]. This investment is crucial for expanding manufacturing capacity and advancing technology [GPT]. The company manufactures AI chips for major players like Nvidia, AMD, Broadcom and Marvell Technology [1]. These firms are driving the demand for advanced semiconductors [GPT].

market performance

TSMC’s stock (TSM) closed at $224.68, down 0.8%, on the stock market today [1]. However, it had reached an all-time high of $228.88 on the previous Friday [1]. Despite the slight dip, analysts remain largely positive on TSMC’s prospects [5]. Nine analysts have rated TSMC in the last three months, with 88.89% giving a strong buy recommendation [5]. Only 11.11% recommend holding the stock, and none suggest selling [5].

analyst outlook

The average target price for TSMC stock is $231.63, with a high of $270 and a low of $175 [5]. Goldman Sachs added TSMC to its ‘Conviction Buy’ list [7]. They cited increasing demand for advanced chip packaging and a positive outlook for CoWoS expansion [6]. Other analysts also maintain a positive outlook, focusing on TSMC’s technological advancements and strategic positioning in high-performance computing and AI [6]. However, Morgan Stanley lowered its target price, expressing concern about potential order reductions for CoWoS technology [6].

competitive landscape

Intel CEO Lip-Bu Tan is reportedly considering a shift in foundry strategy [3]. The focus would be on the 14A process to compete for orders from Apple and Nvidia [3]. This strategic move indicates intensifying competition in the semiconductor manufacturing sector [GPT]. TSMC’s ability to maintain its technological edge and manufacturing capacity will be crucial in this evolving landscape [alert! ‘geopolitical factors not explicitly mentioned in source’] [GPT].

Bronnen

ai chips stock target