UBS Raises TSMC's Target Valuation, Optimistic About Capacity Expansion and Price Hike Expectations in the Next Three Years

Odaily Planet Daily News UBS raised the target stock price of TSMC, the world's leading wafer foundry, on Monday, from NT$3,000 to NT$3,400, maintaining a "Buy" investment rating. At the same time, the brokerage 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 hikes 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 clients' single-source supply chain issues. The current surging market demand for CPUs, AI accelerators, and edge intelligent applications serves as the core driving force for the company's capacity expansion. (CLS)