Shares of Taiwan Semiconductor Manufacturing Co. (TSMC), the world's leading contract chipmaker, skyrocketed on Monday, marking their most significant single-day gain since April. The surge propelled the stock to a fresh all-time high, fueled by unrelenting investor optimism surrounding the booming demand for artificial intelligence (AI) semiconductors.
Record Rally and Analyst Confidence
The key supplier to tech giants like Nvidia Corp. and Apple Inc. saw its shares jump by as much as 6.9% in Taipei trading. This powerful rally followed a major vote of confidence from Wall Street. Goldman Sachs Group Inc. dramatically raised its price target for TSMC by 35% to NT$2,330. In their report, analysts led by Bruce Lu highlighted expectations of another year of robust growth, stating, "We view AI as a multi-year growth engine for TSMC."
Goldman's analysts also pointed out that TSMC's profit margins are improving, even as the company embarks on a massive $150 billion capital expenditure plan over the next three years to expand its advanced manufacturing capacity. This spending is seen as critical to maintaining its dominance.
AI Fever Drives Broad Asian Tech Rally
TSMC's performance led a widespread charge across Asian technology stocks as investors continued to pour money into the AI theme. The sector remained the biggest booster for regional equities, with the fear of missing out (FOMO) overpowering concerns about potential short-term volatility and geopolitical events.
Other chip stocks also rode the wave. South Korea's Samsung Electronics Co. extended its gains for a fifth consecutive session. The memory chip giant is set to report preliminary results later this week, which will offer crucial insights into whether the sector's impressive stock gains are backed by fundamental earnings strength.
A Trillion-Dollar Titan Powered by AI
The Monday surge adds to an already spectacular run for TSMC. The company's shares soared 44% throughout 2025, a rally that pushed its market value above the $1 trillion milestone for the first time. This historic valuation reflects soaring investor confidence in TSMC's central and irreplaceable role in the global AI boom, with countless chip designers relying on its unparalleled foundry services.
Analysts at Sanford C. Bernstein & Co., including Mark Li, encapsulated this sentiment in a recent note, stating, "For leading-edge semiconductor, capacity from TSMC is the king." They affirmed that 2026 "is still all about AI," while cautiously advising investors to focus on quality names amid bubbling market excitement.
The relentless optimism underscores a broader belief that the AI-driven transformation across industries is a long-term structural shift, with TSMC positioned firmly at its core as the primary manufacturer of the world's most advanced chips.
