Posted 1/25/2024, 2:37:00 PM
TSMC Poised for Significant Growth as AI Chip Demand Surges
- Companies benefiting from AI like Nvidia have soared in valuations, but TSMC remains cheaper despite powering Nvidia's AI chips
- TSMC guiding for 10% revenue growth in Q1 2023, rebounding from declines in 2022. Forecasts 20%+ growth in 2024 from rising demand for advanced 3nm and 5nm chips
- Nvidia and others moving advanced AI chips to 3nm in 2024. 3nm utilization expected to hit 80% in 2024.
- Revenue estimates for TSMC in 2026 now $112 billion. Current valuation suggests 50%+ upside if it hits $100b revenue. More upside if higher valuation multiple.
- TSMC poised to soar as surging AI chip demand drives adoption of its advanced manufacturing processes. Good time to buy before it gets expensive.