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

Jin Shi data shows that Citi analysts pointed out in the latest research report that TSMC's revenue growth rate is expected to remain above 40% before 2027. The agency believes that this expectation is mainly due to the continued rise in demand for AI computing power, the expansion of potential development space for AI agent technology, and the launch of the co-encapsulated optical network cycle. Analysts particularly emphasized that most AI chip customers, represented by Nvidia, AMD and Broadcom, are accelerating their expansion, which is expected to nearly double the growth rate of TSMC's AI-related business revenue. Based on this, Citigroup raised TSMC's profit forecast to a higher level. At the same time, it is predicted that as revenue prospects improve, TSMC's capital expenditures may rise to US$81 billion in 2027 and further increase to US$90 billion in 2028. The institution maintained its buy recommendation and raised its target share price from NT$3800 to NT$4000.