TSMC's AI Revenue Expected To Surge By 2025, Analysts Predict

According to Odaily, analysts from Citigroup have projected a significant increase in TSMC's AI-related revenue by 2025. This growth is anticipated as NVIDIA may become TSMC's largest or second-largest client, contributing 20% of its revenue. In addition to NVIDIA, the development of custom AI chips (ASIC) over the next two to three years is expected to bolster TSMC's business. Most AI chips are expected to transition to a 3-nanometer process by the end of 2025, with the resulting technological advancements likely to drive up average selling prices, further supporting TSMC's profit growth through 2026. Citigroup forecasts TSMC's revenue growth rate to reach 20%-25% in 2025, with a gross margin peaking at 50%. The company's capital expenditure for 2025 is estimated to be between $35 billion and $38 billion.