Citigroup expects TSMC's revenue growth to remain above 40% before 2027

According to Jinshi reports, Citigroup analysts stated in a research report that driven by strong demand for AI computing power, the potential growth space for AI intelligent entities, and the rise of co-packaged optical network cycles, TSMC's revenue growth rate is expected to remain above 40% before 2027.

The analysts noted that considering the expected acceleration in growth for most AI chip customers, including Nvidia, AMD, and Broadcom, TSMC's AI-related revenue growth rate next year may nearly double. Therefore, Citigroup expects the market to continue to raise its earnings expectations for TSMC. Citigroup also pointed out that supported by a strong revenue outlook, TSMC's capital expenditures may further rise to $81 billion in 2027 and $90 billion in 2028, maintaining a buy rating and raising the target price from NT$3,800 to NT$4,000.