Analyst: Nvidia will contribute 20% of TSMC's revenue by 2025
Jan 02,2025
Recently, Citigroup analysts stated that under the leadership of NVIDIA, TSMC's artificial intelligence (AI) related revenue is expected to significantly increase by 2025. NVIDIA may even surpass Apple and become TSMC's largest customer, contributing to TSMC's revenue doubling to 20%.
Citigroup analysts said that in addition to Nvidia, the strong growth momentum in demand for special application integrated circuits (ASICs) specifically designed for AI in the next two to three years will further support TSMC's performance. Most AI chips will shift to using 3nm processes starting from the end of 2025, and with the higher average selling price brought about by technological upgrades, it will help support TSMC's profit growth to continue until 2026.
Previously, TSMC Chairman and President Wei Zhe jia stated at a press conference, "My answer to whether the demand for AI is true is Real, especially since major CSP (cloud service provider) manufacturers are actively building their own chips and deeply cooperating with TSMC. TSMC has also improved chip yield and optimized processes through the use of AI
When asked by analysts about the impact of artificial intelligence (AI) on semiconductors, Wei Zhejia emphasized, "The demand is real and it's just the beginning. One of my key clients said that the current demand is very insane and will continue for several years
TSMC estimates that this year's revenue contribution from AI server processors will more than triple compared with last year, accounting for 14%~16% of the overall revenue, mainly driven by the CPU demand for GPU, AI accelerator, training and inference, not including AI edge computing networking devices.
Citigroup analysts said that in addition to Nvidia, the strong growth momentum in demand for special application integrated circuits (ASICs) specifically designed for AI in the next two to three years will further support TSMC's performance. Most AI chips will shift to using 3nm processes starting from the end of 2025, and with the higher average selling price brought about by technological upgrades, it will help support TSMC's profit growth to continue until 2026.
Previously, TSMC Chairman and President Wei Zhe jia stated at a press conference, "My answer to whether the demand for AI is true is Real, especially since major CSP (cloud service provider) manufacturers are actively building their own chips and deeply cooperating with TSMC. TSMC has also improved chip yield and optimized processes through the use of AI
When asked by analysts about the impact of artificial intelligence (AI) on semiconductors, Wei Zhejia emphasized, "The demand is real and it's just the beginning. One of my key clients said that the current demand is very insane and will continue for several years
TSMC estimates that this year's revenue contribution from AI server processors will more than triple compared with last year, accounting for 14%~16% of the overall revenue, mainly driven by the CPU demand for GPU, AI accelerator, training and inference, not including AI edge computing networking devices.