Citigroup has significantly raised its price target for Taiwan Semiconductor Manufacturing Co. (TSMC), citing robust and sustained demand for advanced artificial intelligence chips. The bank increased its target for TSMC's Taiwan-listed shares to NT$3,800 from NT$2,875, maintaining a "Buy" rating ahead of the company's July 16 earnings call.
Analysts at Citi anticipate that the strong visibility in AI-related orders will likely lead TSMC to raise its own revenue growth outlook for 2026. The bullish forecast is based on broad demand that extends beyond AI GPUs to include custom AI chips, networking silicon, and CPUs. This sustained demand is also expected to support higher wafer prices for TSMC's advanced N2 and N3 process technologies into next year.