Analysts are turning increasingly positive on TSMC, driven by expectations of stronger pricing power and a robust earnings outlook fueled by relentless AI demand. HSBC's Frank Lee lifted his price target to NT$2,300, raising his fiscal 2026 EPS forecast to NT$84.92. He argues TSMC deserves a higher 27x P/E multiple because its negotiating position is stronger than ever, allowing it to pass higher costs to customers.

Lee projects a 36% earnings CAGR through 2027. Bank of America's Haas Liu also raised his target to NT$2,150, pointing to TSMC's dominance at the most advanced nodes and in advanced packaging. With limited competition in leading-edge manufacturing, the foundry can protect margins despite rising expenses.

Both analysts see sustained demand for 3nm and 2nm chips, plus a booming back-end business, as key catalysts supporting higher valuations.