The Zhitong Finance App learned that due to rising expectations for AI revenue, J.P. Morgan Chase raised the target price for TSM.US from NT$770 to NT$850.

Analyst Gokul Hariharan and his team said they believe TSMC will drive almost all AI processing in data centers and edges, and AI will grow significantly in the next three to four years.

According to Komo, AI's risk exposure will rise to 25% by 2027. TSMC's role as a key driver of Al semiconductors is becoming increasingly clear, as various graphics processing units (GPUs), application-specific integrated circuits (ASICs), and edge Al processor programs will accelerate in 2024, and will grow even faster in 2025.

Analysts believe total revenue associated with artificial intelligence will soar to 25% by 2027 as edge AI also begins to make meaningful contributions.

Hariharan believes that within the next three to four years, TSMC will maintain a market share of more than 90% of all AI-related chips, and by 2027, AI-related revenue will grow to 25% of the company's total revenue (19% from artificial intelligence in data centers, and the rest from artificial intelligence at the edge).

Komo said that due to tightly integrated packaging technology, leading process technology, and support from the semiconductor industry's broadest IP and design service ecosystem, TSMC's moat in the field of Al semiconductors appears to be wider than before.

They also saw signs in the supply chain that Intel was outsourcing it to TSMC in the N3 era, which should drive strong growth in 2025-26.

Hariharan believes that with a significant increase in initial customer engagement, TSMC is likely to continue leading the way in the N2 manufacturing technology era.

Analysts have slightly raised their expectations for fiscal year 2025 and expect the company's profitability to reach NT$55-60 in 2026, as revenue continues to grow, while early revenue and gross margin may reach 50% in the middle to late stages.