The 720: TSMC, Japan Industrials, Global PCs, XPeng, China Healthcare, BHP, US Energy Storage

Research evidence excerpt

The 720: TSMC, Japan Industrials, Global PCs, XPeng, China Healthcare, BHP, US Energy Storage

Equity Research

17 July 2026 | 7:19AM HKT

The 720: TSMC, Japan Industrials, Global PCs, XPeng, China Healthcare,

BHP, US Energy Storage

In Focus | TSMC Michael Snaith

+852-2978-0455 |

michael.snaith@gs.com

TSMC – Earnings review: AI demand visibility into 2030 with stronger guidance and Goldman Sachs (Asia) L.L.C.

higher CapEx – Buy. We raise our 12m TP to NT$3,100 following an upbeat 2Q26 Caleb Chan

+852-2978-0790 | caleb.chan@gs.com

analyst meeting where management raised its 2026 revenue growth outlook to over Goldman Sachs (Asia) L.L.C.

40% YoY and lifted 2026 CapEx guidance to US$60-64bn. We believe this stronger

guidance and an additional US$100bn capacity investment in Arizona reflect highly

visible, multi-year AI demand extending into 2030. While 2Q26 gross margins slightly

missed our elevated expectations, 3Q26 guidance points to a more contained margin

dilution from the N2 ramp than anticipated. Consequently, we raise our 2026-2028E

EPS by 3.2-6.0% to reflect the stronger revenue trajectory, resilient profitability, and

incrementally better AI demand. Evelyn Yu

Japan Industrials | NVIDIA Partnerships & Physical AI Initiatives

Japan Industrials – NVIDIA Partnerships and Physical AI Initiatives. Following NVIDIA’s

announcement of physical AI collaborations with multiple Japanese manufacturers,

we believe the market is significantly underestimating the near-term benefits for

Omron, on which we reiterate our Buy rating. While partnerships involving Fujitsu,

Fanuc, Yaskawa Electric, and Kawasaki Heavy Industries remain in the business

exploration stage, Omron has already implemented digital twin technology for PCB

and semiconductor package inspection.