Foreign investors are optimistic about Taiwan s AI acquisition: There will be no competitive pressure in the next few years

Huaer Street analysts believe that Taiwan Electric will face few competition challenges in the next few years, and AI chip-related revenue is expected to rise rapidly.

According to reports from Barron’s and Seeking Alpha, Needham analyst Charles Shi reiterated on the 1st that Taiwan's electricity investment evaluation was "buyed" and the ADR target price was revised from US$225 to US$270. Shi wrote in his research report: "Taiwanese transistor round OEM industry is expected to further strengthen, and it is estimated that there will be no competitive challenges in the next few years."

S estimates that the relevant revenue of Taiwan's foundry AI chips in the Ming Dynasty (2026) is expected to grow from US$26 billion this year to US$33 billion, and further increase to US$46 billion in 2027. He said that the new generation of AI chips released by NVIDIA (Nvidia Corp.) will drive telco AI operations to climb higher every year.

Shi explains that the growth of NTI electricity AI production in 2026 may be slow, mainly because the shipment of AI accelerators has decreased and the silicon content of NVIDIA's next-generation AI chip "Rubin" has not grown. However, in 2026, Taiwan Electric's AI-related cultivation harvest rate will still be a good 20%.

Looking ahead to 2027, Shi predicts that Taiwan's electric AI production harvest will accelerate to nearly 40%, and there will be a chance of a 45% increase in 2028, mainly due to the recovery of silicon content growth of Rubin Ultra and NVIDIA's next-generation architecture "Feynman".

He said, "For investors who want to invest in semiconductor stocks, we recommend that NTD be regarded as the core holding. Semiconductors are an important foundation for further expansion of digital economy."

Taiwanese electricity fell 0.8% on the 1st and closed at US$224.68; it has risen by 13.77% so far this year.