Analyst Raises TSMC Price Target to NT$2,200, Forecasting 20% Upside
Mark Li projects TSMC shares could gain 20% with a price target of NT$2,200, citing strong AI-driven XPU demand and HBM base die requests from Nvidia, SK hynix and Micron. He forecasts AI revenue rising from 18% to low-20s percent in 2026, 40% earnings growth and 20% CAGR through 2028.
1. Price Target Raise
Mark Li raised TSMC’s price target to NT$2,200, reflecting confidence in the chipmaker’s growth outlook and implying a 20% upside potential for the shares.
2. AI Demand Fuels Growth
Nvidia, SK hynix and Micron have placed orders for HBM base dies, while XPU and TPU demand remains strong, broadening TSMC’s AI-driven revenue beyond its core XPU chips.
3. Revenue and Earnings Forecast
AI-driven revenue is projected to climb from 18% of total revenue last year to low-20s percent in 2026, with earnings expected to surge 40% this year and maintain a 20% CAGR through 2028.
4. Capacity Expansion Plans
To accommodate rising AI and non-AI demand, TSMC plans to build additional CoWoS capacity and expand outsourced assembly operations, ensuring supply resilience amid growth pressures.