Nomura Raises TSMC (2330) Price Target to 2135 TWD – Revenue Growth to 30%

Nomura Securities recently published an analytical report on TSMC (2330), significantly raising forecasts for the Taiwanese semiconductor giant. In the face of increasing supply shortages in the global chip market, Nomura analysts expect Asian entities in artificial intelligence, semiconductors, and server infrastructure sectors to experience exceptional growth this year.

High AI chip supply drives TSMC (2330) growth

A key observation from Nomura concerns structural shortages in the semiconductor market, especially in advanced processor segments. Thanks to conservative capacity expansion plans, TSMC is well positioned to fully benefit from the rising demand for AI-powered chips. Giants like Nvidia and Broadcom are driving record orders, and TSMC (2330) is a main beneficiary of this trend. Nomura forecasts the company’s revenue will grow by 25–30% this year (in US dollars), significantly higher than previous market estimates.

Ambitious investment plans for the next two years

Capital investments remain a crucial part of TSMC’s strategy. Nomura maintains its forecast for capital expenditures in 2026 at $45–50 billion. However, considering the limited availability of advanced laboratories (clean rooms) next year, analysts expect an acceleration of capital spending in 2027 to $55–60 billion. These long-term investments aim to diversify the product portfolio and increase manufacturing capacity in the most advanced technologies.

Gross margin (2330) will reach 61.5% – solid profitability growth

Nomura points to several factors supporting margin growth: increased utilization of production capacity, portfolio optimization (growing share of high-performance HPC chips), and price premiums resulting from supply constraints and urgent customer orders. Along with these trends, Nomura predicts that TSMC (2330)'s gross margin in 2026–2027 could reach 61.5%, representing a significant improvement over current levels.

Nomura raises earnings forecast and price target

In response to more optimistic outlooks, Nomura has increased its earnings per share forecasts for this year by 15% and for next year by 19%. Even more notably, Nomura has raised its stock price target for TSMC (2330) on the Taiwan stock exchange from 1855 TWD to 2135 TWD, while maintaining a “Buy” recommendation. This change reflects a reassessment of the company’s growth prospects amid a supply environment that remains severely constrained and record-high demand for advanced chips.