Bernstein Raises TSMC Price Target on AI CPU Growth

Analysts at Bernstein increased the target price for Taiwan Semiconductor Manufacturing Company shares to 3,300 New Taiwan dollars from 2,780 New Taiwan dollars. The firm stated that the company's valuation remains cheap relative to its peers.

In a recent research note, the analysts identified central processing units (CPUs) as a potential new growth driver fueled by the rise of agentic AI. Bernstein projects that CPU revenue for the semiconductor manufacturer will reach the high $30 billion range by 2027.

This projected growth would result in CPUs accounting for a mid-teen percentage of total revenue. This would make CPUs as significant as AI accelerators, including GPUs and ASICs, in terms of wafer revenue contribution.