Aletheia Capital Raises Taiwan Semi Price Target to $1,000

Aletheia Capital analyst Stefan Chang raised the price target on Taiwan Semi (NYSE: TSM) to $1,000 while maintaining a Buy rating.

“We raise TSMC TP to TWD5,000 for the local shares, based on 20x FY28E PER, and $1,000 for the ADRs, based on 25x PER.

We expect TSMC to sustain growth of more than 40% from FY26E through FY28E, implying that EPS could more than double over the period.

Three factors underpin this outlook: first, 50–60% volume growth in AI XPUs and CPUs in CY27E-28E; second, a two- to quadrople increase in chip content from CY26E-29E, driven by the rapid adoption of chiplet architectures; and third, accelerated capacity expansion and continued excellence in chip fabrication.

We now forecast TSMC’s leading-edge capacity to expand 2.5x between CY26E and CY28E, while advanced-packaging capacity nearly triples.

To support this growth, we expect TSMC to invest US$250bn over FY26E–28E; the company has already begun exploring additional sites in central and southern Taiwan and in Texas for future expansion.

TSMC remains in our Alpha Portfolio…”

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