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Businesses around the world are racing to buy up hardware, such as Nvidia chips, to build up AI-supporting infrastructure. That prompted Wall Street brokerages to lift their price targets for TSMC, citing the chip maker’s potential move to charge customers more in 2025 to elevate earnings further.
The AI chip orders have helped make up for lacklustre smartphone sales, which are only just emerging from a trough. Apple remains Hsinchu-based TSMC’s biggest customer.
Valuation concerns are tempering optimism on AI investor darling Nvidia, with a New Street Research analyst downgrading the stock earlier this week, saying it is “getting fully valued”.
TSMC and other AI-related stocks in Taiwan have helped lift the benchmark Taiex Index by more than 40 per cent over the past 12 months, despite overarching concerns about US-China geopolitical tensions around the island.
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