TSMC and ASML Stocks Soar on AI Chip Demand and Analyst Upgrades

TSMC shares hit a record high after a Goldman Sachs upgrade, driven by AI chip demand and improved margins. Market value surpassed $1 trillion. ASML also received an upgrade on strong DRAM and AI logic demand.

TSMC shares soared nearly 7% to a record high in Taipei after Goldman Sachs raised its price target by 35% to NT$2,330, citing strong demand for AI chips and improved profit margins. The rally, TSMC’s largest single-day gain since April, pushed its market capitalization above $1 trillion for the first time, following a 44% surge in 2025. Goldman Sachs projects TSMC will invest over $150 billion in capacity expansion through 2028, with revenue growth estimates raised to 30% for 2026 and 28% for 2027. Tight supply is expected for advanced nodes, especially 3nm and 5nm, with gross margins forecast to remain above 60%. The surge in TSMC shares also lifted Taiwan’s Taiex index above 30,000 for the first time. Bernstein upgraded ASML stock, raising its price target to €1,300, citing a DRAM upcycle and increased demand for advanced logic chips, with earnings per share projected to grow at an 18% compound annual rate from 2025 to 2027. Both TSMC and ASML are seen as central players in the ongoing AI-driven semiconductor boom.