Motley Fool says Taiwan Semiconductor Manufacturing (TSMC) could benefit from continued AI data-center spending because it makes logic chips for Nvidia, AMD and Broadcom. TrendForce estimates TSMC generated 72.5% of semiconductor revenue in the segment during Q2.
The article says Nvidia faces competition from AMD GPUs and workload-specific AI chips being designed by Broadcom and its hyperscaler clients, which it says can deliver AI computing at lower cost and greater effectiveness. It argues TSMC’s supplier role could benefit it regardless of which chipmakers gain ground.
Nvidia said data-center capital spending by the five largest AI hyperscalers could approach $800 billion this year and rise to $1.3 trillion next year. It sees global annual data-center spending reaching $3 trillion to $4 trillion by 2030. TSMC announced a further $100 billion investment in its Arizona production facilities during Q2.
