UBS raised its price target for Taiwan Semiconductor Manufacturing Co. (TSMC) to T$3,400.
The bank previously set a price target of T$3,000. UBS maintained its Buy rating ahead of the company's second-quarter earnings report. Analysts expect surging AI chip demand to drive robust growth. UBS also increased its 2026 sales forecast for the chipmaker. The bank anticipates higher capital expenditures through 2028 to expand capacity. Increased spending aims to address customer concerns regarding supply constraints.
TSMC announced a strategic partnership with Winbond Electronics for wafer-on-wafer (WoW) stacking technology. The collaboration aims to establish a local DRAM supply chain for AI chips. This move reduces reliance on major memory producers and mitigates geopolitical risks. The integration bypasses memory bottlenecks while improving power efficiency for advanced chips.
TSMC’s U.S.-listed shares increased 1.47% in pre-market trading.