TSMC surges 5.17% as Goldman Sachs upgrades price target 35% citing AI demand

Taiwan Semiconductor Manufacturing Co. (TSMC) surged 5.1729% in pre-market trading on January 5, 2026, marking a significant prelude to a broader market rally in Asian tech stocks.

The upward momentum was fueled by Goldman Sachs analysts upgrading their price target for TSMC by 35%, citing sustained AI-driven demand and the company’s pivotal role in global chip manufacturing. Analysts highlighted AI as a “multi-year growth engine” for TSMC, with projected $150 billion in capacity expansion over three years to meet surging orders from tech giants like Nvidia and Apple.

Investor optimism also reflected TSMC’s dominant position in the foundry sector, as its market value surpassed $1 trillion. The rally underscored confidence in the company’s ability to maintain profit margins despite heavy capital expenditures, with analysts emphasizing its irreplaceable role in leading-edge semiconductor production.

Further analysis suggests that the company’s long-term growth may be influenced by macroeconomic cycles and the evolution of AI infrastructure. Nonetheless, the current trajectory appears robust, with demand outpacing supply in the semiconductor space.