Taiwan Semiconductor Manufacturing Co., or TSMC (TSM), received a new street-high price target from Aletheia Capital ahead of its first-quarter 2026 earnings, scheduled for Thursday, April 16. The firm’s analyst Stefan Chang raised his price target to $600.00 from $500.00, implying 64% upside from current levels, while maintaining a Buy rating.
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It is worth noting that Chang included TSMC in Aletheia’s “Alpha Generation” portfolio, highlighting it as a high-conviction idea.
Why Chang Is Bullish on Taiwan Semiconductor
The analyst said TSMC is stepping up its capacity expansion plans. This includes earlier timelines for advanced node production, expansion of CoPoS packaging, and faster growth in SoIC technology.
As a result, most of the new capacity is expected to come online in 2027 and 2028. If fully utilized, this could drive another leg of strong revenue growth after an already expected 30%+ CAGR between 2024 and 2027.
Chang also sees a sharp rise in earnings, with 2028 profits possibly reaching nearly three times 2025 levels. To support this growth, TSMC may invest between $220 billion and $230 billion from 2026 to 2028. However, he believes the company’s strong cash generation should cover these investments while still allowing it to maintain or even improve shareholder returns.
Looking ahead, the analyst expects TSMC’s second-quarter revenue to grow about 8% to 10% sequentially, with gross margins remaining stable in the mid-60% range.
What Is TSM’s Stock Price Target?
According to TipRanks, TSM stock has a Strong Buy consensus rating based on six Buys and one Hold assigned in the last three months. At $423.50, TSMC’s average stock price target implies an upside of 16% from the current level.
