TSMC shares surge 5.17% on Jan. 5 2026 on AI optimism and Goldman Sachs price target upgrade

Taiwan Semiconductor Manufacturing Co. shares surged 5.17% in pre-market trading on Jan. 5, 2026, as optimism over artificial intelligence-driven demand and a significant price target upgrade from Goldman Sachs fueled investor enthusiasm. The move followed the firm’s 44% rally in 2025, pushing its market capitalization past $1 trillion for the first time.

Goldman Sachs analysts raised their price target for TSMC by 35% to NT$2,330, citing robust AI growth prospects and improving profit margins despite a projected $150 billion in capacity expansion over three years. “AI is a multi-year growth engine for TSMC,” the report noted, emphasizing the chipmaker’s dominant role in supplying advanced semiconductors for global tech leaders like Nvidia and Apple.

Analysts at Sanford C. Bernstein & Co. echoed the bullish outlook, calling TSMC the “king” of leading-edge semiconductor capacity. The stock’s rise mirrored broader momentum in Asian tech equities, with TSMC’s performance driving Taiwan’s Taiex index to a record above 30,000. However, officials have urged a more balanced market structure amid the sector’s rapid ascent.

Investor sentiment remains focused on AI’s long-term potential, though some caution about valuations persists. TSMC’s upcoming Jan. 15 earnings report and broader capital market activity, including AI-related listings in Hong Kong, could further shape near-term momentum.