This article first appeared on GuruFocus .
Shares of TSMC ( NYSE:TSM ) fell about 1.5% on Wednesday, even as JPMorgan lifted its price target on the semiconductor maker to NT$2,100 from NT$1,700.
The firm maintained an Overweight rating, citing strong AI-driven growth prospects.
JPMorgan analysts expect 2026 to deliver around 30% revenue growth in USD terms. They pointed to rising demand for TSMC's N3 node, a faster N2 ramp, gains in advanced packaging, and higher average selling prices as key drivers.
Gross margins are also projected to improve due to better product mix, higher yields on N3 wafers, more expedited N4/N3 orders, and favorable Taiwan dollar exchange rates.
Looking ahead to 2027, the bank forecasts over 20% revenue growth as capacity for leading-edge nodes remains tight and AI-related capital expenditures continue to rise.
Upside risks include stronger-than-expected margins in early 2026, additional N2 capacity, resumed H200 shipments from Nvidia (NVDA), and potential gains in mature technology driven by industrial and automotive demand.
