Citigroup analysts stated in a report that Taiwan Semiconductor Manufacturing (TSM) is likely to achieve stronger revenue growth over the next two years. They noted that chip demand is increasing not only for AI accelerators but also across the broader ecosystem, including CPUs, networking chips, and co-packaged optics.
The analysts indicated that tightening supply conditions are reinforcing TSM's pricing power and margin resilience. They pointed out that thanks to demand for larger and more advanced process chips, TSM's AI-related revenue could more than double.
They added that Citigroup expects 2-nanometer chips to become TSM's largest revenue driver, with clear order visibility for at least the next three years.
Citigroup raised its price target for TSM from NT$2,600 to NT$2,800. The stock was trading at NT$1,780.00.
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