Goldman Sachs released a report indicating that Taiwan Semiconductor's (TSM.US) Q2 results were roughly in line with expectations. During yesterday's (18th) corporate briefing, investors were concerned about price strategy and the growth prospects of advanced encapsulation. The management team's tone on next year's price outlook was more positive than the bank's original estimate. It is believed that with the company's strong bargaining power and leadership position, there is a greater chance of raising its long-term gross margin target.

The bank has raised its profit forecast for Taiwan Semiconductor from this year to 2026, with increases of 7.1%, 8.4%, and 6.1%, respectively, to reflect second-quarter performance, higher prices, and gross margin assumptions. It is expected that Q3 revenue (measured in USD) will increase by 11.8% QoQ, with a gross margin of 55.4% and an operating profit margin of 44.9%. The bank maintains its 'buy' rating and inclusion in the list of high-conviction buys in the Asia-Pacific region, with a 12-month target price for Taiwan stocks raised from NTD 1,160 to NTD 1,230, and a target price for US stocks raised from USD 218 to USD 227.