Citi expects TSMC revenue growth to remain above 40% through 2027
According to Jin10, Citi analysts said in a research report that strong demand for AI computing power, the potential growth of AI agents, and the emergence of a co-packaged optics networking cycle could keep TSMC’s revenue growth above 40% through 2027. The analysts said that, as growth is expected to accelerate for most AI chip customers, including Nvidia, AMD and Broadcom, TSMC’s AI-related revenue growth could nearly double next year. Citi therefore expects market earnings forecasts for TSMC to continue rising. Citi also noted that, supported by a strong revenue outlook, TSMC’s capital expenditure could climb further to US$81 billion in 2027 and US$90 billion in 2028. It maintained its Buy rating and raised its target price from NT$3,800 to NT$4,000.
According to Jin10, Citi analysts said in a research report that strong demand for AI computing power, the potential growth of AI agents, and the emergence of a co-packaged optics networking cycle could keep TSMC’s revenue growth above 40% through 2027. The analysts said that, as growth is expected to accelerate for most AI chip customers, including Nvidia, AMD and Broadcom, TSMC’s AI-related revenue growth could nearly double next year. Citi therefore expects market earnings forecasts for TSMC to continue rising. Citi also noted that, supported by a strong revenue outlook, TSMC’s capital expenditure could climb further to US$81 billion in 2027 and US$90 billion in 2028. It maintained its Buy rating and raised its target price from NT$3,800 to NT$4,000.