Key Points on TSMC’s Forecast
Taiwan Semiconductor Manufacturing (NYSE: TSM) is projected to outperform Wall Street’s expectations in 2026, benefitting from strong AI chip demand and capacity expansion. The company’s revenue surged by 33% in the first 11 months of 2025, and consensus estimates anticipate a 48% growth in earnings to $10.42 per share in 2025. Analysts predict a 20% increase in revenue and earnings for TSMC in 2026, though some indicators suggest it could exceed that estimate due to improving chip packaging capacity and potential price hikes.
By the end of 2026, TSMC’s advanced chip packaging capacity is expected to reach 125,000 wafers per month, up 66% from current levels. Notably, the company might increase prices for its advanced chip nodes by 3% to 10%. If these trends materialize, TSMC’s earnings could increase by 40%, potentially reaching $14.59 per share, valuing the stock at approximately $481, which represents a potential 67% rise from current prices. Currently, the 12-month median price target for TSMC is set at $355, indicating a 23% upside.
