Institution: Central Processors May Become TSMC's New Growth Driver

In a research report, Bernstein analysts stated that with the rise of agent-based AI earlier this year, the central processing unit market is expected to accelerate growth and may become a new growth driver for TSMC. Bernstein's analysts currently expect that by 2027, TSMC's CPU revenue will reach the high end of the $30 billion range, accounting for about 15% of its total revenue. Therefore, in terms of wafer revenue contribution in 2027, CPUs may be as important as AI accelerators, including GPUs and ASICs. Bernstein has raised TSMC's target price from NT$2,780 to NT$3,300 and noted that its valuation is low compared to its peers.