TSMC Soars 2.17% On Goldman's Bullish Outlook

TSMC's share price surged to a record high today, with an intraday gain of 2.17%.

The strategy of buying TSM shares after they reached a recent high and holding for 1 week showed poor performance over the past 5 years. The annualized return was -3.2%, significantly underperforming the market. This indicates that relying on recent highs as a timing point and holding for a short duration is not a profitable strategy for TSM.

Goldman Sachs has raised its price target for TSMC to NT$1,210 from NT$1,145 and placed it on its Conviction Buy list. The firm's optimistic outlook is driven by easing concerns over large AI-chip order cuts and expanding demand for TSMC’s advanced CoWoS packaging beyond AI workloads. Additionally, Goldman Sachs increased its earnings forecasts by 2%-6% for 2025-27, anticipating significant revenue growth from 3-nanometre and 5-nanometre production.

TSMC announced strategic changes and capital investments in June 2025, including a $10 billion capital allocation into its overseas subsidiaries. This move is aimed at mitigating foreign risks and potentially enhancing TSMC's global operations. These factors indicate positive prospects for TSMC, contributing to its stock price movements.