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

On Oct. 8 that Citigroup analysts stated in a research report that, driven by strong AI computing power demand, the potential growth space for AI agents, and the emerging co-packaged optics (CPO) network cycle, TSMC's revenue growth rate is expected to remain above 40% before 2027. The analysts noted that considering most AI chip customers, including NVIDIA, AMD, and Broadcom, anticipate accelerating growth, TSMC's AI-related revenue growth next year could nearly double.

Therefore, Citigroup expects the market to continue raising its earnings forecasts for TSMC. Citigroup pointed out that underpinned by strong revenue prospects, TSMC's capital expenditure may further rise to $81 billion in 2027 and $90 billion in 2028. Citigroup maintains a "Buy" rating on TSMC, upgrading its price target from NT$3,800 to NT$4,000. (Jinshi)