--- title: "Taiwan Semiconductor Manufacturing Doubles Down on CapEx as Agentic AI Expands, Say Bullish Analysts" type: "News" locale: "en" url: "https://longbridge.com/en/news/302140120.md" description: "TSMC shares fell despite record profits, yet analysts remain bullish. Needham raised its price target to $560, citing strong AI-driven growth and high Q4 capex expectations exceeding $21 billion. DA Davidson reiterated a Buy rating, highlighting 41% YoY revenue growth driven by HPC demand. Management maintains full-year capex guidance, confident in Agentic AI market potential." datetime: "2026-10-16T18:29:52.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/302140120.md) - [en](https://longbridge.com/en/news/302140120.md) - [zh-HK](https://longbridge.com/zh-HK/news/302140120.md) generator: "portal-rs" --- # Taiwan Semiconductor Manufacturing Doubles Down on CapEx as Agentic AI Expands, Say Bullish Analysts **Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM)** shares are down on Friday, despite the company reporting record profits. Here are some key analyst takeaways: - **Needham** analyst **Charles Shi** reiterated a Buy rating, while raising the price target from $530 to $560. - **DA Davidson** analyst **Gil Luria** reiterated a Buy rating and price target of $500. **Check out other analyst stock ratings.** **Needham:** Taiwan Semiconductor Manufacturing delivered a strong beat-and-raise quarter, with revenue coming in above the high end of the guidance and gross margins in-line with expectations, Shi said in a note. While capex (capital expenditure) declined slightly from the previous quarter’s levels, the company maintained its full-year capex guidance, the analyst noted. This indicated that the spend in the fourth quarter is likely to be high, with quarterly capex expected to surpass $21 billion, he added. "Management sees potential for AI accelerator revenue growth to be above the current guidance of mid- to high-50s CAGR in 2024-2029," Shi wrote. **See More: Top Momentum Stocks** **DA Davidson:** Taiwan Semiconductor Manufacturing’s total revenue grew 41% year-on-year and 16% sequentially to $46.7 billion, Luria said. This was driven by continued demand for the company’s leading-edge technologies across HPC (high-performance computing), which now represents around 68% of total revenue, he added. Management guided to total revenue in the range of $52.3 billion to $54.3 billion for the fourth quarter, implying 58% year-on-year at the midpoint, the analyst stated. While reiterating their full-year capex guidance, management noted that the "newly emerging Agentic AI market and strong structural demand from customers continue to give them confidence to invest," he further wrote. **TSM Price Action:** Shares of Taiwan Semiconductor Manufacturing had declined by 1.62% to $415.39 at the time of publication on Friday. **Read Also: Taiwan Semiconductor Holds the Cards As NVIDIA, Apple and AMD Battle for Limited AI Chip Capacity** ### Related Stocks - [STSM.US](https://longbridge.com/en/quote/STSM.US.md) - [TMYY.US](https://longbridge.com/en/quote/TMYY.US.md) - [TSMG.US](https://longbridge.com/en/quote/TSMG.US.md) - [TSMU.US](https://longbridge.com/en/quote/TSMU.US.md) - [TSMX.US](https://longbridge.com/en/quote/TSMX.US.md) - [TSMY.US](https://longbridge.com/en/quote/TSMY.US.md) - [TSMZ.US](https://longbridge.com/en/quote/TSMZ.US.md) - [TWSC.US](https://longbridge.com/en/quote/TWSC.US.md) - [XTAI.US](https://longbridge.com/en/quote/XTAI.US.md) - [TSM.US](https://longbridge.com/en/quote/TSM.US.md) ## Related News & Research - [This AI Chip Stock Has Been Billionaire Philippe Laffont's Largest Holding Throughout 2026. Here's What $10,000 Invested Today Could Be Worth by 2030.](https://longbridge.com/en/news/301947403.md) - [Key facts: TSMC (2330) Q3 record profit; $98B capex to 2028](https://longbridge.com/en/news/302155094.md) - [TSMC Q3 Earnings Preview: Can Profit Hit a Record High for a Sixth Straight Quarter? Wall Street's Highest Target Price Is $665](https://longbridge.com/en/news/301683133.md) - [Here's What a $1,400 Investment in Taiwan Semiconductor Manufacturing (TSMC) Stock Could Be Worth in 3 Years](https://longbridge.com/en/news/301561211.md) - [Taiwan Semiconductor CEO Sees No Ceiling on Profitability](https://longbridge.com/en/news/301957250.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**