Central Processing Units Could be New Growth Driver for TSMC

Dow Jones
08/11

0401 GMT - With the takeoff of agentic AI earlier this year, the central processing unit market is set for faster growth and could become the new growth driver for TSMC, Bernstein analysts say in a research note. The analysts now expect TSMC's CPU revenue to hit the high $30 billion range in 2027, making up a mid-teen percentage of its total revenue. As a result, CPUs could be as significant as AI accelerators, including both GPUs and ASICs, in terms of wafer revenue contribution in 2027. Bernstein raises TSMC's target price to 3,300 New Taiwan dollars from NT$2,780 and notes that its valuation is cheap compared with peers. Shares last traded at NT$2,400.00.

 

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