UBS Raises TSMC Target Valuation, Bullish on Capacity Expansion and Price Hike Expectations Over Next Three Years

Odaily Odaily reports that UBS on Monday raised its target stock price for TSMC, the global wafer foundry leader, from NT$3,000 to NT$3,400, maintaining a "Buy" investment rating. At the same time, the brokerage raised its overall sales growth forecast for TSMC in 2026, judging the company's performance growth momentum to be sustainable in the medium to long term, and predicting the company may initiate product price increases in early 2027, further boosting profitability.

UBS predicts that TSMC will continue to increase its capital expenditure scale from 2026 to 2028 and implement multiple rounds of capacity expansion plans, effectively alleviating industry pain points such as chip supply shortages and customer supply chain homogenization. Currently, demand in the CPU, AI accelerator, and edge intelligence application markets continues to heat up, becoming the core driving force for the company's capacity expansion. (CLS)