Major Bank Ratings | Nomura: Raises TSMC Taiwan Stock Target Price to 2,135 TWD, Expects Revenue Growth of 25% to 30% This Year

Glonghui January 8th｜Nomura released a research report stating that, given the severe supply constraints, market profit expectations for Asian AI semiconductor and server supply chain companies will continue to be revised upward this year. Nomura believes that with a relatively prudent capacity expansion plan, TSMC can fully capitalize on the strong growth potential of the AI logic semiconductor industry led by Nvidia and Broadcom this year, resulting in a 25% to 30% increase in revenue (in USD terms). Nomura maintains its 2026 capital expenditure forecast for TSMC unchanged at $45 billion to $50 billion, but considering the limited cleanroom capacity in 2026, it expects TSMC's capital expenditure in 2027 to accelerate to $55 billion to $60 billion. Nomura also pointed out that with higher loads, optimized platform mix (more HPC), and an increasing number of urgent orders in response to strong customer demand amid severe supply constraints, TSMC’s gross margin is expected to reach 61.5% in 2026 to 2027. Therefore, Nomura raised its earnings per share forecasts for this year and next year by 15% and 19% respectively, and increased its target price for TSMC shares from NT$1,855 to NT$2,135, reiterating its “Buy” rating.