Taiwan Semiconductor Manufacturing (TSM) stock ticked higher last week as investors digested bullish projections for the chip giant’s artificial intelligence revenue trajectory, with analysts outlining a clear path to $90 billion in AI-driven sales by 2029.
Needham analyst Charles Shi upgraded his price target for TSMC stock to $270 from $225, maintaining a “Buy” rating on the world’s largest contract chipmaker. His analysis suggests that TSMC can achieve its ambitious AI revenue target without requiring dramatic volume increases, instead relying on higher silicon content per package and custom high-bandwidth memory solutions.
TSMC’s 2-nanometer technology remains on track for volume production in the second half of 2025, positioning the chipmaker to capitalize on the demand for next-generation AI chips. The foundry expects to double both its AI-related revenue and chip-on-wafer-on-substrate (CoWoS) packaging capacity in 2025.
While Shi warns of potential headwinds in 2026 due to slower AI accelerator volumes, he projects a strong recovery with nearly 40% growth in 2027 and 45% in 2028 as advanced architectures drive higher silicon content requirements.
Taiwan Semiconductor Manufacturing delivered strong first-quarter results that exceeded profit expectations. A solid Q1 performance reinforces its position as the world’s leading contract chipmaker amid surging demand for artificial intelligence. The foundry giant reported net income of $10.97 billion, beating estimates and marking a remarkable 60% increase from the previous year.
Revenue climbed 41.6% year-over-year to $25.50 billion, slightly surpassing analyst forecasts. The standout performance was driven by TSMC’s high-performance computing division, which encompasses AI and 5G applications, accounting for 59% of total revenue with a 7% quarterly increase. Advanced technologies of 7-nanometer and below represented 73% of total wafer revenue, highlighting the company’s technological leadership.
TSMC has also demonstrated strategic foresight by expanding its U.S. operations. It announced an additional $100 billion investment in Arizona facilities, bringing total U.S. commitments to $165 billion. This expansion will enable approximately 30% of TSMC’s 2-nm and other more advanced capacity to be manufactured within the U.S., addressing geopolitical concerns while serving major American clients.
artificial intelligence, Taiwan Semiconductor Manufacturing, revenue target, Taiwan Semiconductor
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