Big banks are turning more bullish on TSMC just before its earnings call, good news for shareholders even as Taiwan's market pulls back.

• Foreign brokers are racing to lift their TSMC targets, with Macquarie now the highest on the Street and Citi, Goldman Sachs and Morgan Stanley all raising theirs too.
• The driver is strong AI chip demand: 3-nanometre orders are full, and revenue growth next year is seen running at 40% or more.
• Chip prices are expected to rise again in 2027 for the most advanced production, which should push profit margins close to 70%.
• Taiwan stocks fell on the day anyway, with TSMC, MediaTek and Delta all slipping as heavyweight shares weakened.
• AMD's Lisa Su toured Taiwan and then South Korea hunting for more capacity, and said AMD's $10 billion Taiwan investment will only grow.

Outlook: Attention now turns to next Thursday's earnings call, where 2-nanometre pricing and margin guidance will decide whether the stock can justify these higher targets.