Taiwan Semiconductor Manufacturing Co. (TSMC) is on the brink of reaching a $1 trillion market capitalization as a result of a surge in demand for AI-related products and anticipated price hikes set for 2025.
Consequently, various financial institutions on Wall Street have adjusted their price targets for the company upwards. Goldman Sachs, for instance, has raised its target by 19% to NT$1,160, foreseeing moderate price increases for chips with three- and five-nanometer technology.
Additionally, JPMorgan anticipates that AI sales will contribute 35% to TSMC’s overall revenue by 2028 and foresees an increase in capital expenditure.
TSMC’s US-listed ADRs have experienced a significant 73% surge in value this year, propelling the company’s market capitalization to $932 billion, coming close to the coveted $1 trillion threshold. This impressive growth has allowed TSMC to outperform Berkshire Hathaway, solidifying its position as the eighth-largest company globally.
It was reported earlier through Taiwan’s Commercial Times that TSMC is set to boost prices for its 3nm wafers by more than 5%, with a projected 10% to 20% increase in advanced packaging prices next year. The report also mentioned that major clients like Apple, Nvidia, and five others have already reserved all production capacity at TSMC until 2026.
