Goldman Sachs raises Taiwan Semiconductor's target price to $550 and upgrades profit forecasts for this year and next year

Goldman Sachs released a report stating that it has raised its earnings forecast for Taiwan Semiconductor (TSM.US) for 2026 to 2027 by 4% to 6%, based on stronger AI-driven demand and higher gross margins. Although smartphone and consumer demand remain weak, with some order reductions in the short term, the firm believes this can be offset by strong demand for AI accelerators and AI-driven traditional server CPUs. The firm continues to expect that leading node wafer supply will remain constrained, and AI will be a key driver of Taiwan Semiconductor's revenue growth through 2027 and beyond.

The firm expects Taiwan Semiconductor to maintain its growth momentum since 2025, now forecasting that its revenue in USD will grow by 35%, 30%, and 29% year-on-year from 2026 to 2028; reiterating a "Buy" rating for Taiwan Semiconductor (TSM.US), with a target price raised from $520 to $550