US-based financial giant Goldman Sachs has expressed favorable opinions regarding the shares of a technology company, Taiwan Semiconductor Manufacturing Company Limited (TSMC), which has gained over 68% in value recently. The institution included TSMC’s shares in its “Conviction Buy” safe purchase list due to the company’s significant involvement in the burgeoning artificial intelligence sector.
TSMC Share Forecast
TSMC is not only Taiwan’s largest company but also one of the world’s leading semiconductor manufacturers. The company produces semiconductors for global tech giants like Apple, Nvidia, and Qualcomm. In the market, TSMC shares are seen as critical indicators of growth in the semiconductor sector.
Another notable feature of TSMC is its investments in CoWoS (Chip on Wafer on Substrate) technology, which powers ultra-high-performance computing applications. This technology positions the company as a vital player in artificial intelligence and data center solutions.
Goldman Sachs’ Analysis and Predictions
Goldman Sachs highlighted that investments in the latest technology might positively impact TSMC’s medium-term growth momentum. According to their analysis, decreasing concerns over large volume AI chip orders and growing demand for CoWoS technology are boosting interest in the company’s products and services.
Goldman Sachs stated, “We expect TSMC’s dollar-based revenue to rise by 29% this year and 17% in 2026.”
Furthermore, smartphone manufacturers, server, and network infrastructure providers are predicted to show interest in CoWoS technology. Goldman Sachs anticipates that TSMC may receive forward orders from these clients in the coming periods.
TSMC Price Target
Goldman Sachs updated its target price prediction for TSMC, raising it from $1,145 to $1,210. Currently, TSMC shares are trading at $1,080. If this new target is achieved, an approximate 12% increase in share price could be realized.
Experts believe that developments in artificial intelligence and high-performance computing fields will be crucial in determining TSMC’s overall performance. Additionally, the company’s leadership in next-generation semiconductor technologies is a key factor attracting investor interest.
Rapid developments in the semiconductor and technology sectors can cause fluctuations in the company’s financial indicators. Therefore, it is essential for investors to consider risk analysis when making decisions. It’s emphasized that any potential losses arising from investment decisions are entirely the responsibility of the investor.
