TSMC Stock Hits New Record Amid Rising Demand from Apple and Nvidia

TSMC's stock reached another all-time high, climbing to NT$2,580 with a 3.2% increase, pushing its market value to NT$66.9 trillion. The surge came as major customers like Apple and Nvidia reportedly raised their 2-nanometre chip orders by 10% to 20%, forcing TSMC to accelerate capacity expansion. The company plans to increase 2nm wafer production to roughly 120,000 per month by the end of 2026, up from earlier estimates of 90,000 to 100,000.

TSMC is bringing five 2nm fabrication plants online this year, including two in Hsinchu and three in Kaohsiung. While the shortage of advanced chips is boosting pricing, meeting the increased demand will require significant spending, particularly on costly 2nm production and overseas fabs. TSMC expects first-year 2nm output to be 45% higher than the first year of 3nm, with capacity growing at a roughly 70% annual rate between 2026 and 2028.

Despite the challenges, Wall Street remains bullish. JPMorgan maintained a Buy rating on October 1 and raised its Taiwan-listed price target to NT$3,300 from NT$3,200. However, analysts warn that persistent shortages could frustrate customers and encourage them to seek alternatives from competitors like Samsung or Intel. TSMC's CEO, C.C. Wei, acknowledged the supply gap is "very big," and the company lifted its 2026 capital-spending plan to between $60 billion and $64 billion.

Morningstar expects TSMC to raise prices in 2027 to offset higher raw-material costs and tight supply, lifting its fair-value estimate to NT$3,440, or $534 per ADR. TSMC plans foundry price increases of as much as 10% in 2027. Investors will focus on 2027 capex, 2nm economics, AI demand, and pricing when the company reports its third-quarter earnings on October 15.