Taiwan Semiconductor Manufacturing Co. (TSM) and ASML Holding (ASML) received fresh votes of confidence from Wall Street as surging artificial intelligence demand prompts analysts to lift their financial outlooks. The renewed bullishness on two of the world's most critical chipmakers highlights the expanding hardware backbone that supports not only AI but also the blockchain and cryptocurrency mining sectors.
UBS lifts TSMC target on robust AI demand
UBS raised its price target on TSMC's Taiwan-listed stock to T$3,400 from T$3,000 while maintaining a Buy rating, citing strong AI chip demand and an improving growth trajectory. TSMC is scheduled to report second-quarter 2026 earnings on July 16, with Wall Street projecting earnings per share of $3.80 per ADR unit, a sharp increase from $2.47 a year earlier. Revenue is expected to reach roughly $40 billion, up from $30.07 billion in Q2 2025, representing about 33% year-over-year growth.
CEO C.C. Wei has described demand for AI chips as “extremely robust,” and the company forecasts 2026 capital spending near the top of its $52–56 billion guidance. UBS expects TSMC to continue raising capital expenditure through 2028 to alleviate client concerns over supply constraints and the need for second-source diversification. The bank also sees potential for chip price increases as early as Q1 2027, reinforcing the revenue outlook. TSMC shares have gained over 40% year-to-date, with the average analyst price target implying a further 14.3% upside.
ASML’s monopoly position fuels growth bets
ASML, the sole supplier of extreme ultraviolet (EUV) lithography systems required for advanced chip manufacturing, opened Friday near $1,841, just below its 52-week high of $1,959. Its backlog remains massive, with clients booking production slots years in advance. First-quarter 2026 net sales came in at €8.77 billion, and installed base management revenue — servicing and upgrading existing machines — climbed to €2.49 billion from €2.13 billion in the prior quarter. Management raised full-year 2026 net sales guidance to a range of €36–40 billion and highlighted accelerating system shipments in the second half.
Analysts at Bank of America reiterated a Buy rating and raised their price target, citing higher earnings estimates for 2027 and 2028. Consensus EPS forecasts point to 33% growth next year, supported by margin expansion as ASML transitions toward high-volume production of its High-NA EUV and NXE:3800 platforms. Institutional investors continue to accumulate the stock, with $4.23 million in new positions taken by Decker Retirement Planning and major holdings by Dimensional Fund Advisors.
Crypto market implications
While the immediate focus is on AI, the semiconductor industry’s health is pivotal for the cryptocurrency ecosystem. Advanced chips are essential for mining Bitcoin and other proof-of-work cryptocurrencies, as well as for running high-performance nodes and validators. TSMC manufactures the chips used in popular mining rigs, and ASML’s lithography tools dictate the technological ceiling for future chip generations. Sustained investment in chipmaking capacity and bullish financial forecasts signal that the infrastructure underpinning digital assets remains on a solid growth track, historically a tailwind for crypto markets.
