UBS raises TSMC target valuation, optimistic about capacity expansion and price hike expectations over next three years

Odaily reported that UBS has raised its target price for TSMC, the global leader in wafer foundry, from NT$3,000 to NT$3,400 on Monday, maintaining a "Buy" investment rating. The brokerage has also raised its overall sales growth forecast for TSMC in 2026, believing the company's growth momentum has medium- to long-term sustainability, and expects the company to initiate product price increases in early 2027, further boosting profitability.

UBS predicts that TSMC will continue to increase capital expenditure and implement multiple rounds of capacity expansion plans from 2026 to 2028, effectively alleviating industry pain points such as chip supply shortages and an over-reliance on a single client supply chain. The ongoing surge in demand for CPUs, AI accelerators, and edge intelligence applications serves as the core driver for the company's expansion. (CLS)