UBS raises TSMC’s target valuation, bullish on capacity expansion and price hike expectations over the next three years

Odaily Planet Daily News UBS on Monday raised the target stock price of TSMC, the world's leading wafer foundry, from NT$3,000 to NT$3,400, maintaining a "Buy" investment rating. At the same time, the securities firm raised its overall sales growth forecast for TSMC in 2026, judging that the company's performance growth momentum has medium- to long-term sustainability, and predicting that the company is likely to initiate product price increases in early 2027, further boosting profit levels.

UBS forecasts that TSMC will continue to increase its capital expenditure scale from 2026 to 2028, implementing multiple rounds of capacity expansion plans, effectively alleviating industry pain points such as chip supply shortages and the over-reliance of customers on a single supply chain. Currently, the market demand for CPUs, AI accelerators, and edge intelligent applications continues to heat up, becoming the core driving force behind the company's capacity expansion. (CLS)