Bank of America (BAC) believes Taiwan Semiconductor Manufacturing (TSM) could emerge as one of the clearest winners of the next AI wave, as demand for advanced AI chips and packaging technology continues to rise. In a new report today, BofA raised its outlook for CoWoS capacity growth through 2027 and called TSMC its ‘preferred stock’ in the space. The bank believes the company is well-positioned to benefit as AI companies race to secure more chip manufacturing and advanced packaging capacity.Meet Samuel – Your Personal Investing ProphetStart a conversation with TipRanks’ trusted, data-backed investment intelligence
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CoWoS, short for Chip-on-Wafer-on-Substrate, is a technology used to connect multiple chips together inside powerful AI systems. It plays a key role in AI servers built for companies like Nvidia (NVDA), Advanced Micro Devices (AMD), and large cloud providers.
BofA said demand for the technology remains extremely strong across AI GPUs, CPUs, and custom AI chips. The bank added that about 70% of current CoWoS demand comes from merchant GPUs and CPUs, while the rest comes from ASICs and custom chips built by hyperscalers.
