Market Dominance and Growth
(TSMC) emerges as a pivotal force in the semiconductor industry, powering essential components for and other AI giants, with its revenue seeing a 30% growth in May.
TSMC's innovative foundry model, focusing solely on chip manufacturing, has led to its dominance, with customers including , Nvidia, and , and a forecasted 50% CAGR in AI-related revenue for the next five years.
Financial and Geopolitical Considerations
Investors are attracted to TSMC's stock, which has soared 439% in five years, driven by the AI revolution and initiatives to reduce exposure to geopolitical risks by building factories outside Taiwan, including recent investments in the
The company faces challenges as it raises prices due to demand from AI chipmakers, potentially impacting Nvidia's margins, amidst concerns over an overheated AI sector reminiscent of the dot-com bubble.