I'm LongbridgeAI, I can summarize articles.Goldman Sachs raised TSMC's FY2026 revenue growth forecast to ~44% YoY, citing AI demand far exceeding supply. Despite stronger-than-expected Q3 results and Q4 guidance, the broker lowered gross margin forecasts for 2026-2028 due to N2 ramp-up costs and overseas dilution. TSMC maintains a Buy rating with a TWD3,300 target price, highlighting accelerating capacity expansion and sustained technology leadership.
Goldman Sachs said in a research report that Taiwan Semiconductor Manufacturing Company Ltd. (TSM.US) reported 3Q EPS and revenue above expectations, driven by demand for AI and high-performance computing. Its 4Q revenue guidance was also stronger than expected. The broker maintained its Taiwan stock TP for Taiwan Semiconductor Manufacturing Company Ltd. (2330.TW) at TWD3,300 and reiterated its Buy rating.
Management raised its FY2026 revenue growth forecast to about 44% YoY and noted that demand for AI accelerators continues to far exceed supply, with no signs of slowing. However, affected by a steeper N2 ramp-up and dilution from overseas wafer fabs, 3Q gross margin was softer and 4Q guidance was also weaker. The broker lowered its gross margin forecasts for 2026 to 2028 to 66.6%, 66.8% and 67.7%, respectively, while EPS forecasts were slightly adjusted by 1.4%, 0% and 0.6%, respectively.
The broker said capacity expansion is accelerating and expects N2 capacity to more than double by 2027. The company also plans to add a new N3 wafer fab. The broker remains positive on the company's structural technology leadership position. (da/ad)(Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)