UBS Raises TSMC Target Price to 3,400 TWD, Expects Price Hikes Starting 2027

According to UBS, on Monday (June 29), the bank raised TSMC's target price to 3,400 Taiwan dollars from 3,000 Taiwan dollars, maintaining a buy rating. UBS upgraded the chipmaker's 2026 overall sales growth expectations and expects TSMC to initiate product price increases starting early 2027 to further boost profitability. The bank predicts TSMC will continue expanding capital expenditure and execute multiple capacity expansion plans from 2026 to 2028, addressing industry supply shortages as demand for CPUs, AI accelerators, and edge computing applications remains elevated.
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