JPM Expects Taiwan Semiconductor Manufacturing Company Ltd. to Accelerate Capacity Expansion, Revenue May Grow 40% YoY Next Year
I'm LongbridgeAI, I can summarize articles.JPMorgan expects TSMC to accelerate capacity expansion before 2028 due to AI demand and supply gaps. Capital expenditure is projected to reach $90B in 2027 and $109B in 2028. Revenue is forecast to grow 40% YoY in 2027 and 28% YoY in 2028. JPM maintains an 'Overweight' rating on TSMC with a target price of TWD3,300.
JPMorgan issued a research report stating that, due to the widening supply-demand gap for advanced wafers and strong artificial intelligence demand, Taiwan Semiconductor Manufacturing Company Ltd. (TSM.US) is highly likely to accelerate its capacity expansion pace before 2028.
JPMorgan said that, with new fabs being added for N3 wafers, rapid growth in N2 capacity and earlier advancement of A14 capacity, it expects Taiwan Semiconductor Manufacturing Company Ltd.'s capital expenditure to increase to USD90 billion and USD109 billion in 2027 and 2028, respectively. Supported by strong blended ASP increases and growth in advanced capacity, the broker expects Taiwan Semiconductor Manufacturing Company Ltd.'s revenue in USD terms to grow 40% YoY and 28% YoY in 2027 and 2028, respectively.
The broker maintained the "Overweight" rating on Taiwan Semiconductor Manufacturing Company Ltd. (2330.TW) listed in Taiwan, with a target price of TWD3,300. (sl/da)(Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)