TSMC Could Reach $3 Trillion Valuation as AI Demand Surges
TSMC, the world’s largest contract chipmaker, is a critical manufacturing partner for designers of artificial intelligence processors, including Nvidia and Advanced Micro Devices. A global buildout of AI data centers has increased demand for leading-edge manufacturing and advanced packaging, placing high-performance computing at the center of TSMC’s growth outlook and prompting investors to reassess its long-term earnings and valuation potential.
A recent U.S. media column projected that TSMC could surpass $3 trillion in market value by the end of 2028 if earnings compound at about 14% annually. Under that scenario, the company’s American depositary receipts could rise to $580. High-performance computing now accounts for 66% of TSMC’s revenue, underscoring how AI chips and infrastructure spending have become the main engines supporting its expansion.
All Coverage
1 original reportsThe Backstory
The history behind this eventAletheia Raises TSMC Price Target to NT$3,500 on AI Demand, Capacity Expansion
TSMC is a major global supplier of advanced wafer fabrication and packaging services, with demand for AI accelerators keeping leading-edge capacity tight. Aletheia Capital believes TSMC's technology leadership and capacity-expansion capabilities will enable it to continue securing AI chip orders, a key driver of medium- to long-term growth.
Aletheia Capital recently reiterated its “buy” rating after a site visit to TSMC and raised its price target to NT$3,500. The firm expects AI demand and expanded capacity in advanced processes and packaging to drive a compound annual growth rate of more than 30% from 2024 to 2027, followed by a potential second wave of accelerating growth in 2028.
TSMC August Revenue Tops NT$514.8 Billion on AI Demand
Taiwan Semiconductor Manufacturing Co., the world’s largest contract chipmaker, is a key supplier of advanced processors used in artificial intelligence and high-performance computing systems. Its sales are closely watched as a gauge of global semiconductor demand, particularly as cloud providers and technology companies accelerate spending on AI data centers and leading-edge chips.
TSMC said August consolidated revenue reached NT$514.806 billion, surpassing NT$500 billion for the first time and setting a monthly record. Sales increased 10.1% from July and 53.3% from a year earlier, supported by robust demand for AI and high-performance computing chips. Revenue for the first eight months exceeded NT$3.38 trillion, also the highest level recorded for the period.
Subscribe to Mark Radar Weekly
Every Friday, the week's strongest signals in your inbox. Unsubscribe anytime.
If you search news on Google, you can set Mark Radar as a preferred source—our coverage will show up more often in your results. Set as preferred source on Google →