Posted 3/18/2024, 10:56:00 AM
TSMC Shares Soar as AI Chip Demand Outweighs Buffett Sale and Geopolitical Worries
- Warren Buffett sold his $5B stake in TSMC in 2022 due to geopolitical tensions, but TSMC shares are now soaring due to demand for its chips used in AI
- TSMC has over 90% market share in advanced chips made for AI, making it a key player in the AI boom
- Geopolitical concerns remain over Taiwan and TSMC's concentration of chipmaking there, but chip demand is overriding these worries
- TSMC is diversifying operations with new fabs planned in Japan, Germany, and the US to mitigate concentration risk
- TSMC's dominance in advanced chips and over 50% share of the overall foundry market position it to benefit from long-term growth in AI and semiconductors