Shares of Taiwan Semiconductor Manufacturing Co. (TSMC) are reaching new all-time highs. In recent days, the stock on the Taipei Exchange rose by as much as 7%, representing approximately a 50% increase since the beginning of 2025, and the company’s market capitalization has surpassed one trillion dollars. One of the key drivers of this strong growth is the recent decision by Goldman Sachs to raise its price target for the stock, highlighting analysts’ strong confidence in the company’s continued development.
AI as a Growth Engine and Valuation Driver
Goldman Sachs’ decision alone does not tell the whole story. In recent years, artificial intelligence has become a central engine for TSMC’s growth, with demand for AI chips so high that limited production capacity in the most advanced 3 nm and 5 nm technologies ensures the company maintains its market edge for years to come. Forecasts indicate that revenue growth in US dollars could reach 30% in 2026 and 28% in 2027. The announced investment plan exceeding 150 billion dollars through 2028 demonstrates that the company is focused on sustainable growth in AI and data center sectors rather than short-term gains.
2 nm Technology – Another Milestone
TSMC’s introduction of 2 nm technology marks a true breakthrough. Mass production now utilizes Gate-All-Around transistors, delivering higher performance and significantly improved energy efficiency compared with previous 3 nm processes. Production capacity for this node is already largely reserved by key clients, including Apple and NVIDIA, ensuring stable revenues for the coming years. In the mobile chip segment, 2 nm technology will form the foundation for top-tier processors, providing a clear performance and efficiency advantage.
Market Dominance and Competition
TSMC maintains a clear lead over competitors, including Samsung, which is developing its own 2 nm processes but remains technologically behind. While some clients explore alternative manufacturing sources to increase supply chain flexibility, TSMC continues to be the preferred partner for the most demanding AI, data center, and high-end mobile chip projects.
Market Sentiment and Investor Expectations
The strong upward movement of TSMC’s stock means the market increasingly values the company as strategic infrastructure for the global data-driven economy rather than a traditional chipmaker. High valuations translate into low tolerance for any disappointments. Any surprise in financial results or delays in the production of the most advanced nodes could trigger significant market reactions.
Positive factors include record stock levels, fully utilized production capacity, aggressive investment strategy, and technological leadership in 2 nm processes. Risks stem from high market expectations, cost pressure from investments in cutting-edge technology, and potential competitive pressures or order dispersion due to multi-sourcing strategies.
Source: xStation5
Conclusion
TSMC enters 2026 with tremendous momentum. Stock prices are at record levels, analysts are raising price targets, and the narrative of a sustained AI boom supports positive investor sentiment. Mass production of 2 nm processes, expanding production capacity, and strategic partnerships with leaders in mobile and data center markets make TSMC a key player in the global semiconductor industry. The company is no longer just a chip manufacturer; it has become the foundation of the era of artificial intelligence, high-performance computing, and next-generation mobile technologies.
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