As the key maker of chips designed by Nvidia Corp and others, TSMC is seen as a prime beneficiary of the AI boom. While the current outlook for smartphones and other consumer products remains cloudy, the industry’s continual upgrades to ever-finer circuitry are another positive.
With Taiwan Semiconductor Manufacturing Co still trading at pedestrian valuations even after surging to a record high, there is potential for its upcoming results to drive the stock even higher.
Some market observers see a possibility that the world’s largest chip foundry will raise its revenue and capital expenditure forecasts for the year following its better-than-expected sales for the latest quarter. This would provide evidence that the strong growth fuelled by artificial intelligence will be sustained.
