EXCLUSIVE: Nvidia Keeps AI Profits, TSMC May Want a Bigger Cut
Nvidia captures huge AI chip profits, but MarketVector’s Josh Kaplan sees foundries such as TSMC gaining a bigger share of the economics.
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AMD cools after reaching a 52-week high and $1T market cap. Overbought technicals pull shares back, but analyst outlook remains bullish.
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Nvidia captures huge AI chip profits, but MarketVector’s Josh Kaplan sees foundries such as TSMC gaining a bigger share of the economics.
Taiwan Semiconductor Manufacturing (TSMC) is positioned as a low-risk, high-reward AI investment due to its dominant 72.5% market share in chip fabrication and irreplaceable manufacturing capacity. With massive capital investments ($265 billion for Arizona facilities) and projected AI spending growth to $3-4 trillion by 2030, TSMC is well-positioned to benefit from AI demand regardless of which specific chip designers lead the market. The stock trades at reasonable valuations of 26x forward earnings.
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