TSMC targets $85 billion budget, fueled by surging AI chip demand

Bank of America reiterated its Buy rating for Taiwan Semiconductor Manufacturing Co. (TSMC).

Analysts project the company’s 2027 capital expenditures will reach between $80 billion and $85 billion.

This forecast exceeds the current Wall Street consensus of approximately $75 billion.

Persistent demand for advanced AI chips is currently stretching production capacity limits.

TSMC previously raised its 2026 revenue growth forecast to over 40% in July.

The company also increased its 2026 capital spending guidance to a range of $60 billion to $64 billion.