TSMC’s Growth Potential Boosted by N3 Capacity Expansion and NVIDIA’s Rubin GPU Volume Increase

Quinn Bolton, an analyst from Needham, reiterated the Buy rating on TSMC. The associated price target is $360.00.

Quinn Bolton has given his Buy rating due to a combination of factors that suggest strong growth potential for TSMC. One of the key reasons is the anticipated increase in TSMC’s N3 capacity, which is expected to drive significant revenue growth. Despite recent management statements indicating new fabs will focus on N2, there is potential for N3 capacity expansion, which could be a major growth driver.
Additionally, the expected volume increase of NVIDIA’s Rubin GPU in 2026 is likely to contribute to this growth. As a result, Quinn Bolton has raised TSMC’s 2026 growth rate forecast from 20% to 25% and increased the capital expenditure estimate from $45 billion to $50 billion. These adjustments reflect a positive outlook on TSMC’s ability to capitalize on leading-edge technology and maintain its competitive edge in the semiconductor industry.

In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $341.00 price target.