TSMC seen hitting $711 by 2027 on 10% fee hike

The Motley Fool's case rests on a dynamic that runs against the usual AI narrative. Rather than betting on the chip designers whose names dominate headlines, the article points to the company that manufactures the chips they design. TSMC operates as a pure-play foundry, meaning it makes chips designed by customers such as Nvidia, AMD, and Broadcom — a position that reportedly lets it set terms rather than accept them.

Gartner expects the semiconductor industry to generate $1.6 trillion in revenue this year, up 92% from last year, and another double-digit jump to $1.9 trillion in 2027. AI data centers are expected to account for 53% of global semiconductor revenue in 2030, up from 36.5% in 2026. Within that expansion, the article argues TSMC captures value from both higher shipment volumes and improved pricing, helped by reports that it will raise chipmaking fees by 10% from 2027 and charge 10%-15% more from customers who order above their initial commitment.

That pricing dynamic is why the author questions the consensus view that TSMC's earnings per share growth will slow from 59% in 2026 to 29% in 2027. Whether the bullish case holds depends largely on whether those fee increases stick and whether earnings actually outpace analysts' estimates — factors the author presents as likely rather than certain.