Shares of Taiwan Semiconductor Manufacturing Co. (TSMC) posted their largest rally since April, with an increase of as much as 6.9%, following Goldman Sachs’ move to raise the price target by 35% to NT$2,330, citing expectations of another year of solid growth.
This came as strong enthusiasm for artificial intelligence continues to buoy the world’s leading contract chipmaker into 2026.
On Monday, TSMC played a pivotal role in lifting Asian technology stocks, as investors funneled more capital into the booming AI sector. The surge came in spite of recent geopolitical turmoil, including U.S. strikes against Venezuela, with investors undeterred by short-term volatility amid widespread fear of missing out on further gains. The technology sector once again was the primary driver of regional equity markets.
Goldman Sachs analysts see AI as a key, long-term driver of TSMC’s growth and point to improving profit margins at the company. The investment bank forecast that TSMC will spend $150 billion over the next three years to expand its manufacturing capacity.
The company’s performance pushed Taiwan’s Taiex Index more than 3% higher, to a record above 30,000. At the same time, authorities are looking for a more balanced market, noting TSMC’s significant influence on the overall market structure.
As TSMC soared 44% in 2025, propelling its market value past $1 trillion for the first time, this reflects growing investor confidence in the company’s integral role amid the AI-driven surge in global semiconductor demand.
Sanford C. Bernstein analysts highlighted TSMC’s leading position in cutting-edge semiconductor manufacturing. They note that the AI theme continues to dominate market focus in 2026, and recommend investors concentrate on higher-quality names while weighing concerns over elevated valuations.
Notably, TSMC is scheduled to announce its latest earnings results on January 15.
Additionally, positive sentiment also extended to other semiconductor firms, with South Korea’s Samsung Electronics Co. climbing for a fifth consecutive session ahead of its upcoming preliminary results.
Japanese equipment makers Tokyo Electron Ltd. and Advantest Corp. each saw gains exceeding 7%, while Chinese chip stocks advanced after the country’s integrated circuit investment fund increased its holding in Semiconductor Manufacturing International Corp., and DeepSeek announced a more efficient AI training method.
According to Bloomberg data, the sector may see further momentum from capital market activity, particularly in China, where around 11 AI-related firms plan Hong Kong listings this month that could raise up to $4.1 billion.
