Citi: TSMC's revenue growth is expected to remain above 40% through 2027

Odaily News: Citi analysts said in a research report that driven by strong AI computing demand, the potential growth space for AI agents, and the rise of the co-packaged optics (CPO) network cycle, TSMC's revenue growth rate is expected to remain above 40% through 2027. The analysts said that considering that most AI chip customers, including Nvidia, AMD, and Broadcom, are expected to see accelerated growth, TSMC's AI-related revenue growth rate next year may nearly double. Therefore, Citi expects the market to continue raising its earnings expectations for TSMC.

Citi pointed out that supported by the strong revenue outlook, TSMC's capital expenditure may further rise 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)