Demand for Chips Shows No Signs of Slowing. Is Taiwan Semiconductor Too Expensive Now? - Yahoo Finance

With the rapid advancement of artificial intelligence, global demand for chips remains robust, and Taiwan Semiconductor Manufacturing Company (TSMC) has emerged as a standout performer in the semicond... Read original →

The relentless surge in AI applications continues to drive robust chip demand, with TSMC leveraging its 3nm and EUV capabilities to dominate the global AI chip manufacturing landscape. Its joint venture with Sony to produce next-gen image sensors strengthens its foothold in smart devices and AI vision computing. However, the stock's high valuation (trailing P/E of 36) and geopolitical risks are dampening investor enthusiasm. Escalating U.S. export controls on China Taiwan/ Taiwan, China pose supply chain challenges, forcing companies to navigate rising compliance costs and logistics disruptions. While NVIDIA and other downstream players continue investing, TSMC may accelerate capacity expansion, yet its long-term growth hinges on sustained demand from AI and automotive sectors. Over the next 12–24 months, if AI compute growth slows or tech decoupling intensifies, TSMC could face valuation pressure, though its technological moat remains strategically significant.