.png){kind=logo}
Taiwan Semiconductor Manufacturing (TSMC) shares surged in Taipei on Monday, January 5, as AI optimism persisted. The stock rose close to 6.9% and hit a new record high. Goldman Sachs lifted its target 35% to NT$2,330 and cited expectations for another strong year.
Goldman analysts said AI should support multi-year demand for advanced chips and related packaging. They also noted an improvement in TSMC’s profit margins and projected about $150 billion in capacity spending over the next 3 years.
The rally in Taipei followed a broader jump in Asian technology shares. Investors added exposure despite concerns about overheating in the AI theme across regional equity markets. They also looked past short-term swings after US strikes against Venezuela raised risk sentiment.
TSMC supplies leading-edge chips to customers such as NVIDIA and Apple, which ties the company to AI and premium devices. The shares rose 44% in 2025, lifting market value above $1 trillion. Investors now watch the next earnings report on January 15 for updates on AI orders and expansion plans.
TSMC’s jump helped lift Taiwan’s Taiex by more than 3%, taking the index above 30,000 for the first time. Taiwan’s Deputy Finance Minister, Juan Ching-hwa, told lawmakers that the level looked out of reach until recently. He also said officials want a more balanced market structure given TSMC’s heavy index weight.
Elsewhere in Asia, chip-linked shares extended gains as investors kept adding to the AI theme. South Korea’s Samsung Electronics advanced for a fifth straight session ahead of preliminary results later this week. In Japan, Tokyo Electron and Advantest climbed more than 7% each during Monday’s session.
Chinese chip shares also rose after the nation’s integrated circuit investment fund increased its stake in Semiconductor Manufacturing International. Meanwhile, DeepSeek pointed to a more efficient approach to training AI models. Traders tracked listing plans from 11 AI-related firms in Hong Kong, with proceeds up to $4.1 billion.
Wall Street banks have also adjusted targets as the valuation gap between regions remains wide. A gauge of Asia tech hardware trades near 16 times earnings, while the NASDAQ100 trades near 25 times. Bernstein analysts said TSMC's capacity is central to the AI cycle and urged investors to focus on quality.
Bernstein kept an Outperform rating and set a $330 target for TSMC’s US-listed shares. Bank of America lifted its target to $360, citing AI demand visibility. TSMC will release results before US trading on January 15, which can reset sector positioning. Investors also watch mainland fund flows and Hong Kong IPO pricing for sector signals.
Also Read: Top News Today: TSMC 2nm Chips 2025, SoftBank’s $40B OpenAI Bet
