Citi: TSMC's AI revenue is expected to grow significantly by 2025
Odaily reports that in a research report, Citigroup analysts stated that by 2025, as NVIDIA (NVDA.O) may become the largest or second-largest customer of TSMC (TSM.N), contributing 20% of its revenue, TSMC's AI-related revenue is likely to grow significantly. They said that in addition to NVIDIA, the development momentum of custom AI chips (ASIC) in the next two to three years may also support TSMC's business. Since most AI chips will shift to the 3nm process from the end of 2025, the increase in average selling prices driven by technology upgrades may further support TSMC's profit growth until 2026. Citigroup expects TSMC's revenue growth rate to reach 20%-25% in 2025, with a gross margin reaching a high of 50%. The company added that TSMC's capital expenditure in 2025 may be between $35 billion and $38 billion.
