TSMC Shares Surge 6.9% to Record High After Goldman Sachs Raises Price Target by 35%
Taiwan Semiconductor Manufacturing Co. shares surged 6.9% to record highs after Goldman Sachs raised its price target by 35% to NT$2,330, citing strong AI demand growth expectations. The rally helped TSMC achieve a $1 trillion market valuation for the first time in 2025, with shares gaining 44% year-to-date. The performance led a broader rally in Asian tech stocks, reinforcing investor confidence in the chipmaker's pivotal role as a supplier to Apple and Nvidia during the AI boom.
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Taiwan Semiconductor Manufacturing Co. shares experienced their most significant rally since April, with the world's largest contract chipmaker riding a wave of investor confidence in artificial intelligence demand. The stock surge reflects growing market optimism about the company's strategic position in the global semiconductor industry.
Record-Breaking Stock Performance
TSMC shares surged as much as 6.9% during Taipei trading, reaching new record highs. The rally was directly attributed to Goldman Sachs Group Inc.'s decision to raise its price target for the chipmaker by 35% to NT$2,330. The investment bank justified this significant increase by pointing to the company's prospects for another year of robust growth.
| Key Performance Metrics: | Details |
|---|---|
| Single-Day Gain: | 6.9% |
| Goldman Sachs Price Target: | NT$2,330 |
| Target Increase: | 35% |
| Stock Status: | New record high |
Market Valuation Milestone
The strong performance has propelled TSMC to achieve a significant milestone, with its market valuation surpassing $1 trillion for the first time in 2025. This achievement comes on the back of impressive share price appreciation, with the stock gaining 44% during the current year. The trillion-dollar valuation underscores growing investor confidence in TSMC's central role during the ongoing AI boom.
Broader Market Impact
TSMC's rally helped spearhead a comprehensive surge in Asian technology equities. The company's performance as a major supplier to industry giants Apple Inc. and Nvidia Corp. has reinforced investor appetite for AI-related investments, despite some concerns about potential market overheating. The semiconductor sector experienced the largest boost to regional shares as investors shifted focus from short-term volatility concerns to opportunities for additional gains.
Industry Context
The positive momentum extended beyond TSMC, with other semiconductor stocks also participating in the rally. Samsung Electronics Co. of South Korea continued its upward trajectory for a fifth consecutive session. The memory manufacturer is expected to release preliminary results later this week, which will provide additional insights into whether earnings fundamentals support the sector's significant advances.
TSMC's foundry services remain critical to many of the world's chip businesses, reinforcing its strategic importance in the global semiconductor supply chain. The company's performance reflects broader market confidence in the sustained demand for AI-related technologies and the semiconductor industry's growth prospects.
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