This is good news for TSMC investors, with brokers raising price targets as AI chip demand keeps surprising to the upside.

• TSMC just posted record quarterly profit, beating its own forecast, as advanced chip demand from AI stays strong.
• Analysts expect next quarter's profit to set another record and have raised their 12-month price target well above current levels, saying the stock is still undervalued.
• TSMC is ramping up spending and adding another advanced chip factory in southern Taiwan, with U.S. production also moving up to 2027, to keep up with AI customer orders through 2028.
• Anthropic's new IPO filing flagged Taiwan's concentration of advanced chipmaking as a global risk, warning that conflict, a blockade, or a disaster there could disrupt chip supply for years — a reminder of how much the world depends on TSMC.
• Separately, Taiwan's stock market rose and recovered its seasonal average line, with TSMC and MediaTek up while Delta Electronics fell; a green energy company, Hodune, got hit with a stock price floor after executives were targeted in a corruption investigation.

Outlook: Analysts expect TSMC's profit and stock price to keep climbing through 2028 on AI chip demand, though record-tight chip and memory supply could stretch into 2027-2028.