TSMC's total market value approaches 1 trillion dollars, a cumulative increase of 73% this year

TSMC, which is the leader of foundries, has emerged as a major beneficiary of the spread of artificial intelligence, and is gaining popularity among global investors due to its cutting-edge technology and reasonable evaluations. TSMC is also benefiting greatly from being a major supplier of NVIDIA's advanced chips, which just surpassed Microsoft on Tuesday to become number one in the world in terms of market capitalization.

Wall Street investment banks raised TSMC's target share price this week, citing a rapid increase in demand related to artificial intelligence and the possibility of price increases that will boost the company's earnings in 2025. JPMorgan Chase raised its 2028 AI sales forecast to 35% of total sales, and Citigroup raised its target stock price by 12% due to strengthened earnings forecasts.

The Goldman Sachs Group predicted that TSMC's 3nm and 5nm chip manufacturing prices would rise in the “first half of the single-digit range,” and raised the target stock price 12 months later by 19% and set it at 1,160 Taiwan dollars.

Goldman Sachs analysts such as Bruce Lew said in a Tuesday report, “As positive sentiment surrounding artificial intelligence grows, a more attractive risk-reward profile for TSMC has come into view. As AI continues to spread, we see TSMC as one of the main beneficiaries.”