UBS Raises TSMC Price Target and Maintains Buy Rating
UBS lifted its target price for Taiwan Semiconductor Manufacturing Co. (TSMC) to T$3,400, up from the prior target of T$3,000, while reaffirming a Buy recommendation. The brokerage also upgraded its 2026 sales‑growth outlook for TSMC, citing robust demand for chips used in artificial‑intelligence (AI) applications.
Capital Expenditure Outlook
UBS expects TSMC to increase capital spending throughout 2026 to 2028, a move intended to expand capacity and mitigate client concerns about limited supply and the need for second‑source diversification. Analysts highlighted that stronger growth prospects across CPUs, accelerators, and emerging edge‑AI workloads are likely to drive this heightened capex commitment.
Competitive Landscape
The note flagged potential competitive pressure from Samsung Foundry, Intel, and Terafab, and indicated that TSMC is expected to discuss its capex plans in detail during its upcoming second‑quarter earnings call.
Upcoming Earnings
TSMC is scheduled to report its Q2 results on 16 July. Forecasts from Investing.com project earnings per share of approximately $3.80 on revenue of $40.06 billion for the quarter.
Forward‑Looking Price Expectations
UBS signaled that TSMC could consider raising its product prices by early 2027, reflecting confidence in sustained demand and the company’s ability to expand supply.