TSMC shares surged 5.17% driven by AI optimism and 35% higher price target from Goldman Sachs

TSMC shares surged 5.1729% in pre-market trading on Jan. 5, 2026, driven by renewed optimism in artificial intelligence demand and a 35% price target increase from Goldman Sachs, which raised its target to NT$2,330 based on expectations of sustained growth.

Goldman Sachs analysts highlighted AI as a "multi-year growth engine" for TSMC, noting improved profit margins despite projected $150 billion in capacity expansion over three years. The move reinforced investor confidence in TSMC’s dominance in leading-edge chip manufacturing, with its market value surpassing $1 trillion in 2025.

Asian tech stocks followed TSMC’s lead as AI-driven investment momentum outweighed short-term volatility concerns. Analysts at Sanford C. Bernstein emphasized TSMC’s critical role in the sector, calling its capacity "the king" for advanced semiconductors. The company is set to report earnings on Jan. 15, with further catalysts potentially emerging from capital market activity in AI-related listings.

Analysts also projected that AI demand will remain resilient into 2027, supported by global data center expansion and increased cloud computing infrastructure investments. This trend could provide further tailwinds for TSMC’s revenue and stock price, especially with upcoming earnings and product roadmap announcements.

Investors are advised to monitor TSMC’s upcoming quarterly earnings for insights into its production capacity utilization and revenue from AI-related chip sales. A strong report could trigger a broader rally in semiconductor and AI hardware stocks, reinforcing TSMC’s leadership in the advanced manufacturing space.