Citi: TSMC's Revenue Growth Expected to Stay Above 40% Through 2027

Odaily reports: Citi analysts said in a research report that driven by robust AI computing demand, the potential growth space for AI agents, and the emergence of a co-packaged optics (CPO) networking cycle, TSMC's revenue growth rate is expected to remain above 40% through 2027. The analysts said that given that most AI chip customers, including Nvidia, AMD, and Broadcom, are expected to see accelerating growth, TSMC's AI-related revenue growth could nearly double next year. As a result, Citi expects the market to continue raising its earnings estimates for TSMC.

Citi noted that supported by the strong revenue outlook, TSMC's capital expenditure could rise further to $81 billion in 2027 and $90 billion in 2028. Citi maintained its "Buy" rating on TSMC and raised its target price from NT$3,800 to NT$4,000. (Jinshi)