TSMC (2330.TW)(TSM.US) is reportedly considering actively expanding its output to meet strong demand, Nomura released a research report saying.

The Company's 4Q25 revenue guidance was slightly higher than the broker's forecast, while its gross margin guidance of 59-61% was significantly higher than market consensus, which is believed to be benefiting from cost improvements.

In August, Nomura highlighted that TSMC's 2026 CoWoS output expansion plan was more cautious, while Nvidia (NVDA.US) and ASIC customers led by Broadcom (AVGO.US) are still seeking more capacity.

Nomura forecasted that TSMC's 2026 revenue will grow by 20% YoY in USD terms, and raised its 2025-2027 gross margin forecasts to 59.3%/ 58.4%/ 58.1% to reflect expected cost improvements and the latest foreign exchange forecasts.

The broker also lifted its 2025-2027 EPS estimations by 4%, and reiterated rating at Buy on TSMC. Nomura elevated its target price for TSMC's Taiwan stock from TWD1,780 to TWD1,855.
~

AASTOCKS Financial News
Website: www.aastocks.com

SG Top Picks
Stock & Type	Code	Strike(Call Level)	Last	Effective Gearing
Nvidia (C)	10055	230 (-)	0.180	5.2 X
Nvidia (C)	10721	175 (-)	0.335	5.2 X
Nvidia (P)	10057	165 (-)	0.265	3.3 X
Nvidia (P)	10714	125 (-)	0.041	5.9 X
Broadcom (C)	10072	435 (-)	0.435	4.6 X
Broadcom (P)	10073	310 (-)	0.560	2.9 X