Why Is TSM Stock Jumping Over 3% Premarket Today?

• TSMC stock rallied over 5% on the Taiwan Stock Exchange on Monday, logging its best session since April.
• TSM shares gained by over 3% in the U.S. premarket session.
• Goldman Sachs increased its price target on the stock by 35%, estimating substantial AI-driven gains for the company this year.

U.S.-listed shares of Taiwan Semiconductor Manufacturing Co. Ltd. jumped by over 3% in Monday’s premarket trading, tracking the gains in the semiconductor major’s Taiwan stock driven by analyst action.

In Taipei, TSMC stock gained 5.4% to a record high on Monday, its best single-day gain since April 2025. That came after Goldman Sachs raised its price target on the stock by 35% to NT$2,330, citing its growth expectations from the company this year, according to Bloomberg.

The boom in artificial intelligence (AI) applications, which is powering growth in the semiconductor and data center industries as a second-order effect, is the central tailwind for TSMC, the investment research firm noted. It also said the company’s profit margins are improving, while its capacity expansion plans paint an upbeat picture.

TSMC is the world’s largest contract chip manufacturer and a key supplier to top firms such as Nvidia and Apple. The company logged a strong 2025, with its U.S. stock rising about 54%, and blowing past the $1 trillion market capitalization mark.

In March, TSMC committed another $100 billion to advanced semiconductor manufacturing in the U.S. That figure builds on earlier plans, including a previous $65 billion investment committed for its fabrication facilities in Phoenix, Arizona.

On Stocktwits, the retail sentiment for TSM was ‘bullish’ as of early Monday, climbing higher over the past week.

In related news, Taiwanese prosecutors stated on Monday that they had filed additional indictments against Tokyo Electron’s Taiwan unit and three other defendants over the alleged theft of trade secrets from TSMC. If convicted, the unit could face fines of up to T$120 million ($3.8 million), prosecutors reportedly said.

TSMC’s Monday gains in Taipei also came alongside a broader rise in Asian equities, which largely shrugged off fresh geopolitical tensions following President Donald Trump’s raid into Venezuela that saw the capture of its leader, Nicolas Maduro.

TSMC is due to report earnings on Jan. 15.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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