TSMC (TSM, Financial) saw its shares surge over 6.3%, reaching a historic peak of $221.84, pushing its market capitalization to $1.15 trillion. Simultaneously, TSMC achieved a record high in Taiwan's stock market, with its stock priced at 1,025 New Taiwan Dollars.
According to a Goldman Sachs report, TSMC is anticipated to experience stable revenue growth this year, projected at 26.8% year-over-year in USD terms, compared to a 29.4% increase last year. This growth is driven by strong demand for advanced process technology, particularly in the artificial intelligence (AI) sector.
Goldman Sachs also noted a more favorable competitive landscape for TSMC and predicts a mid to high single-digit price increase for its 3nm and 5nm chips starting this year. Additionally, advanced AR/VR packaging technology (CoWoS) is expected to see a 10% price hike. With these price adjustments, TSMC's gross margin is estimated to rise to 59.3%, up from last year's 56.1%.
Goldman Sachs has raised its target price for TSMC from $248 to $254 and reaffirmed its "buy" rating.
