Bernstein raises TSMC target price, expecting capital expenditure of $56 billion by 2026

The Bernstein Research Daily pointed out that the revenue of Taiwan, China TSMC in the second quarter reached the high end of the guidance and maintained the Outperformance rating. The target price of Taiwan shares was NT $2780 and the ADR target price of US shares was US $430. Based on the closing price of NT $2440 on July 13th, the target price implies an upward potential of approximately 14%. Bernstein expects TSMC's capital expenditures to be $56 billion in 2026 and $68 billion in 2027, with earnings per share reaching NT $102 in 2026. The report points out that TSMC's advanced process demand exceeds production capacity, and the dynamics of Samsung Foundry and Intel Foundry will not have a substantial impact on TSMC's revenue in the short term.