Shares in Taiwan Semiconductor (TSM) rose the most since April, as enthusiasm for artificial intelligence continues to lift the world’s largest contract chipmaker.
Shares of the key supplier to Nvidia (NVDA) and Apple (AAPL) jumped as much as 6.9% to touch a new record high in Taipei. That came after Goldman Sachs Group raised its TSMC price target 35% to NT$2,330, citing expectations of another year of solid growth, Bloomberg News reported.
As such, TSMC also helped lead a broad charge in Asian tech stocks on Monday, as investors poured more cash into the AI theme despite concerns about overheating.
“We view AI as a multi-year growth engine for TSMC,” Goldman analysts including Bruce Lu wrote in a report. Lu notes the company’s profit margins are improving, even as he projects it will spend $150 billion over the next three years to increase capacity.
Among other chip stocks, South Korea’s Samsung Electronics (SSNLF) extended gains to a fifth-straight session. The memory maker is expected to report preliminary results later this week. TSMC is due to report earnings on Jan. 15.
