Needham analyst Charles Shi has maintained their bullish stance on TSM stock, giving a Buy rating on June 25.
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Charles Shi has given his Buy rating due to a combination of factors, including the anticipated growth in TSMC’s AI revenue and overall business expansion. The forecast suggests that TSMC’s total revenue is expected to increase significantly from approximately $114 billion in 2025 to $160 billion by 2027, with AI revenue projected to rise from $26 billion to $46 billion during the same period.
Additionally, Shi highlights the importance of silicon content growth as a key driver for TSMC’s AI revenue. The ramp-up of Rubin Ultra is expected to accelerate growth in 2027 and beyond. Furthermore, while capital expenditures are projected to grow moderately, a shift towards equipment investment could enhance the wafer fabrication equipment outlook, especially in 2027. The CoWoS and HBM packaging capital expenditures may remain stable in 2026, but an increase in HBM packaging investment is anticipated in 2027.
In another report released on June 25, Goldman Sachs also maintained a Buy rating on the stock with a $242.00 price target.