Goldman Sachs raised its price target on Taiwan Semiconductor Manufacturing Co. (TSMC) to NT$2,330 (roughly a mid‑$400s ADR equivalent), a move that helped send the stock to fresh highs after shares jumped as much as about 6.9% and the company’s market value topped $1 trillion following a roughly 44–45% gain over the prior year. The upgrade came with Goldman describing AI as a “multi‑year growth engine” and projecting materially stronger revenue and margins, which was echoed in coverage noting the immediate market reaction. [1][3][4] Analysts point to sustained AI demand, tight advanced‑node capacity and heavy capital spending as the rationale behind bullish forecasts: reports cite projected revenue growth around 30% in 2026 (and high‑teens to high‑20s thereafter in some projections) and multi‑year capex plans in the tens of billions (Goldman and TipRanks reference roughly $150 billion over several years while Morgan Stanley models 2026 capex in the ~$48–50 billion range). Morgan Stanley flagged an upcoming TSMC analyst meeting (January 15, 2026) as a key catalyst and laid out base, bullish and bearish scenarios tied to 2026 revenue guidance, AI foundry revenue CAGR assumptions and capex that would push the stock modestly higher or lower depending on the guidance. Those near‑term catalyst scenarios sit alongside longer‑term bullish estimates from sell‑side upgrades. [4][1][5] The conclusion is mixed but pragmatic: market sentiment is strongly positive on TSMC’s central role in the AI supply chain and recent analyst upgrades have reinforced that optimism, yet some coverage notes the broader semiconductor rally’s intraday momentum can fade and valuations are now being tested. Investors should weigh the potential upside if guidance and AI demand confirm street expectations against downside risk if TSMC’s guidance or capex cadence disappoints—near‑term moves may be catalyst‑driven, while longer‑term returns hinge on execution of capacity expansion and margin preservation. [2][5][3]