AI-related revenue currently accounts for only 6% of TSMC’s revenue, but investors believe it will grow significantly. This optimism pushed stocks into “overbought” territory, signaling a possible correction.
Analysts acknowledge the existence of risks. Therefore, maintaining the current AI growth rate may not be sustainable in the long term. However, trade tensions between the USA and China, as well as the upcoming US elections, increase uncertainty. In this environment, Apple, a major TSMC customer, faces a stagnant smartphone market that could impact orders for TSMC products.
But analysts are mostly optimistic about TSMC.
Source: Ferra
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