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@ 2024/03/19AI mania eclipses geopolitical fears
The AI gold rush is leaving geopolitical jitters in the dust, and Taiwan Semiconductor Manufacturing Co. (TSMC) is leading the charge.
The cocaine nose jobs of Wall Street are gobbling up TSMC shares like there's no tomorrow, betting big that AI's going to be the cash cow of the year. TSMC's got a whopping 90 per cent stranglehold on the semiconductors that make AI tick.
Last year, the stock plummeted 27 per cent. The Oracle of Omaha, Warren Buffett himself, ditched his €4.6 billion stake in TSMC, spooked by the political powder keg that is its home turf. And the plot thickens with Taiwan's new head honcho, Lai Ching-te, cosying up to Uncle Sam, much to Beijing's chagrin.
UBS O’Connor analyst Bernard Ahkong reckons that while geopolitics used to be the bogeyman for chip champs, it's now blowing a gale in their sails.
"We're just getting started on this semiconductor rollercoaster," he says.
However, there are some issues. TSMC has all its eggs in one basket, right smack in Taiwan. If China throws a wobbly, it's not just TSMC in a pickle—the whole world's chip stash takes a hit.
The AI gold rush is leaving geopolitical jitters in the dust, and Taiwan Semiconductor Manufacturing Co. (TSMC) is leading the charge.
The cocaine nose jobs of Wall Street are gobbling up TSMC shares like there's no tomorrow, betting big that AI's going to be the cash cow of the year. TSMC's got a whopping 90 per cent stranglehold on the semiconductors that make AI tick.
Last year, the stock plummeted 27 per cent. The Oracle of Omaha, Warren Buffett himself, ditched his €4.6 billion stake in TSMC, spooked by the political powder keg that is its home turf. And the plot thickens with Taiwan's new head honcho, Lai Ching-te, cosying up to Uncle Sam, much to Beijing's chagrin.
UBS O’Connor analyst Bernard Ahkong reckons that while geopolitics used to be the bogeyman for chip champs, it's now blowing a gale in their sails.
"We're just getting started on this semiconductor rollercoaster," he says.
However, there are some issues. TSMC has all its eggs in one basket, right smack in Taiwan. If China throws a wobbly, it's not just TSMC in a pickle—the whole world's chip stash takes a hit.
