Needham: Taiwan Semiconductor's AI revenue is expected to reach $90 billion, raising the target price to $270
Needham released a research report, giving Taiwan Semiconductor a "Buy" rating and raising the target price to $270. It is expected that by 2029, Taiwan Semiconductor's AI business revenue will reach $90 billion. Analyst Charles Shi pointed out that although AI business revenue may slow down in 2026, it is expected to grow again in 2027, with a year-on-year growth rate of 45% in 2028. As of Tuesday's market close, Taiwan Semiconductor's stock price was $224.68, up nearly 15% year-to-date
According to the Zhitong Finance APP, investment bank Needham has released a research report, giving Taiwan Semiconductor (TSM.US) a "Buy" rating and raising the target price from $225 to $270. Needham expects that by 2029, Taiwan Semiconductor's artificial intelligence (AI) business revenue will reach $90 billion.
Needham analyst Charles Shi stated: "Based on Taiwan Semiconductor's publicly announced AI revenue target (approximately $90 billion by 2029) and the expected sales volume of AI accelerators (approximately 50 million units by 2030), we have constructed an AI chip demand model and found that Taiwan Semiconductor does not need to achieve significant unit production growth to reach this target. With the increase in the number of computing chips within packages and the shift towards custom HBM basic chips, the significant increase in silicon content should ensure rapid growth in AI revenue to approximately $90 billion within four years."
Shi mentioned that revenue growth for Taiwan Semiconductor's AI business may slow down in 2026, but will rebound again in 2027.
He explained: "Due to the decline in unit production of AI accelerators and the stagnation of silicon content growth in NVIDIA's Rubin chip architecture, we expect that Taiwan Semiconductor's AI business revenue may experience some degree of slowdown in 2026. However, we anticipate that Taiwan Semiconductor's AI business revenue will still grow by 20% year-on-year next year. Looking ahead, as silicon content grows in the Rubin Ultra and Feynman chip architectures, we expect Taiwan Semiconductor's AI business revenue to accelerate significantly by 2027, with a year-on-year growth rate approaching 40%, reaching 45% by 2028."
As of Tuesday's market close, Taiwan Semiconductor fell 0.8% to $224.68. The stock has risen nearly 15% year-to-date
