On January 7, JPMorgan analyst Gokul Hariharan raised the price target for Taiwan Semiconductor Manufacturing Company (NYSE:TSM) to NT$2,100 from NT$1,700, while keeping an Overweight rating on the stock.
The firm expects 2026 to be a strong year for TSMC, projecting 30% revenue growth in U.S. dollars. This growth is anticipated to come from increasing demand for N3 technology, a faster ramp-up of N2 production, stronger advanced packaging, and higher average selling prices.
TSMC's gross margins are also forecast to improve, supported by a better product mix, higher yields on N3 nodes, accelerated expedited wafer orders for N4 and N3 technologies, and favorable Taiwan dollar exchange rates.
For 2027, JPMorgan anticipates revenue growth exceeding 20%, driven by leading-edge manufacturing capacity and sustained capital spending fueled by artificial intelligence demand. The firm noted potential upside risks from gross margins that could be stronger than expected in the first half of 2026, as well as additional capacity and demand for N2 technology extending into 2027.
JPMorgan also highlighted a possible rebound in shipments of Nvidia's H200 chips and potential gains in mature technology segments if industrial and automotive demand increases.
Taiwan Semiconductor Manufacturing Company manufactures and sells advanced chips used in artificial intelligence applications.