JP Morgan released a report forecasting that 2026 will be another strong growth year for TSMC (TSM.US), with revenue in USD expected to grow by 30%. The main drivers include increased demand for N3, accelerated ramp-up of N2 mass production, better-than-expected performance in advanced packaging, and a strong blended ASP uptick. Accordingly, the broker raised TSMC's Taiwan stock target price from NT$1,700 to NT$2,100, and expected the recent strong stock performance to continue in the coming months.

Current major upside risks include: (1) GM beat, especially in 1H26; (2) further increase in N2 capacity and demand before 2027; (3) resumption of strong shipments of NVIDIA H200; (4) potential growth in mature processes if industrial and automotive demand recovers. Major downside risks include: (1) any weakness in AI capex; (2) heightened competitive noise related to Intel (INTC.US); (3) rising memory costs leading to feeble smartphone demand.
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AASTOCKS Financial News
Website: www.aastocks.com

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