The AI Trade Could Be Bigger Than We Think
The AI Trade Could Be Bigger Than We Think
I’m starting to think the AI chip story still has a lot more room to run. TSMC just hit another record high, and the bigger story for me is the demand behind it. AI data centers continue to need more advanced chips, and TSMC sits right in the middle of that supply chain. What really catches my attention is how much of the AI boom depends on companies like TSMC. Nvidia and other chip designers get most of the headlines, but none of this works without the manufacturers producing these increasingly powerful chips. I’m watching , and closely because if AI spending stays strong, the chip supply chain could keep benefiting. I’m not chasing the move, but I definitely don’t want to underestimate how long this AI cycle could last. Do you think TSMC still has plenty of upside, or are AI chip valuations getting too stretched?
TSMC’s role in the AI supply chain is definitely hard to overlook. The demand outlook looks strong, but valuations and the pace of AI spending are still worth watching.
You make a great point about Nvidia needing them to stay competitive. It is definitely a long cycle, but I am keeping a close eye on the valuation levels too.
