TSMC Forecasts Strong AI-Driven Growth as Power Device Prices Set to Rise

Goldman Sachs reaffirmed its buy rating on Taiwan Semiconductor Manufacturing Co (TSMC) and lifted its target price to NT$3,000. The bank expects demand for AI accelerators and server CPUs to boost TSMC’s advanced process and packaging output through 2027, with monthly capacity for N3 and N2 wafers projected at 200,000 and 140,000 units respectively. Margins are forecast to rise to around 67% by 2028, supported by higher product pricing, a better mix and improved utilisation, while capital spending is expected to climb to US$78 billion.

CITIC Securities warned that the power‑device sector is entering a second round of price hikes, driven by exploding AI power‑supply needs. Analysts see the upward price trend continuing into 2027, offering manufacturers a path to faster revenue growth and stronger profitability. Long‑term, AI‑related power demand, together with high‑voltage DC (HVDC) and solid‑state transformer (SST) developments, is expected to open a sizable incremental market for power‑device suppliers.