Goldman Sachs has raised its profit forecast for the Taiwanese chip foundry TSMC due to the high demand for AI products and the expansion of CoWoS technology (Chip on Wafer on Substrate). The investment bank raised its target price for TSMC to NT$1,210 and maintained the “Conviction Buy” rating, highlighting strong confidence in the company.
Reasons for the Upgrade of the Forecast
- High AI Demand: Concerns about potential cuts in AI orders are diminishing as supply chain imbalances decrease. This leads to stable and growing demand for advanced chips, particularly in the field of artificial intelligence.
- CoWoS Expansion: Goldman Sachs significantly raised its forecasts for TSMC’s CoWoS deliveries from previously 585,000 units in 2025 to now 664,000 units, along with correspondingly higher numbers for 2026 and 2027 (1.08 million and 1.57 million units, respectively). This technology is crucial for high-performance chip packaging solutions that are especially in demand for AI applications.
- Revenue Growth: TSMC achieved a net revenue of approximately $25.53 billion in the first quarter of 2025, with a growth of over 40% compared to the previous year.
Financial Metrics
- Gross profit margin stands at a strong 57.4%.
- The price-to-earnings ratio (P/E) is about 20.2.
These metrics reflect a robust operational performance and confirm TSMC’s leading position in the global semiconductor industry.
Importance for Investors
The upgrade of the profit forecast by Goldman Sachs signals a positive development in the tech sector, focusing on semiconductor manufacturers like TSMC. For investors, this means an attractive opportunity profile given the growth in AI-driven technologies and innovative packaging solutions.
In summary, Goldman’s update clearly shows the significant role of TSMC as a key player in global chip production with strong growth potential thanks to high AI demand and technological expansion through CoWoS.