Taiwan Semiconductor Manufacturing's shares climbed more than 2% on Friday, once again reaching a record high. The company's capital expenditure and sales outlook both exceeded expectations, prompting Goldman Sachs to raise its target price for the Taiwan-listed stock from NT$2,330 to NT$2,600. The firm suggested that even in a high-cost environment, a gross margin exceeding 60% could become the new normal.

At 10:19 local time, TSMC's stock was up 2.1%, trading at NT$1,725.

Analysts at Goldman Sachs, including Bruce Lu, noted in a report that TSMC's management indicated the AI-driven supply-demand imbalance remains unresolved, with advanced process capacity still constrained. This reinforces the bank's view that the supply gap could persist until 2027.

TSMC's capital expenditure is entering an upward cycle, with its guidance for this year reaching $52–56 billion, surpassing market expectations.

Advanced packaging is evolving into another growth engine for TSMC. CoWoS revenue is projected to grow 102.5% and 81.2% year-over-year in 2026 and 2027, respectively, increasing its share of total revenue to 11.7% and 16.7%.