Tech Giants Accelerate AI Infrastructure Investments
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 20 2026
0mins
Should l Buy TSM?
Source: NASDAQ.COM
- AI Infrastructure Investment: Major tech companies like Amazon and Meta plan to collectively invest $690 billion in AI infrastructure in 2023, indicating strong demand for AI technology and market potential, which could drive stock prices of related firms higher.
- TSMC's Market Position: Taiwan Semiconductor Manufacturing Company (TSMC), as a primary producer of AI chips, has confirmed strong demand for its products and is expected to benefit from cloud companies expanding their data centers, further solidifying its critical role in AI infrastructure.
- Corning's Growth Outlook: Corning's expertise in optical fiber and connectivity positions it well to capitalize on the demand within AI data centers, having recently achieved record results and forecasting continued growth in the coming quarters, showcasing its strong performance in the AI market.
- Partnership with Meta: Corning's multi-year deal worth up to $6 billion with Meta to supply optical fiber and connectivity products highlights its significant role in big tech's AI investments, potentially leading to substantial revenue growth for the company.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy TSM?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on TSM
Wall Street analysts forecast TSM stock price to fall
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 326.740
Low
63.24
Averages
313.46
High
390.00
Current: 326.740
Low
63.24
Averages
313.46
High
390.00
About TSM
Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based integrated circuit foundry service provider. The Company is primarily engaged in integrated circuit manufacturing services. It offers advanced process technologies, specialised process solutions, advanced photomask and silicon stacking, and packaging-related technologies, while supporting a comprehensive design ecosystem. The Company's products serve diverse electronic sectors including artificial intelligence, high-performance computing, wired and wireless communications, automotive and industrial equipment, personal computing, information applications, consumer electronics, smart internet of things, and wearable devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Taiwan Semiconductor: Surge in AI Chip Demand
- AI Chip Market Growth: Taiwan Semiconductor expects the AI chip market to grow at a mid- to high-50% CAGR from 2024 to 2029, representing a massive growth opportunity that will drive significant capital expenditures to increase chip production capacity, thereby solidifying its market leadership.
- Diverse Demand Support: As technologies like humanoid robots, autonomous driving, and drone delivery become more prevalent, chip demand will continue to rise, placing Taiwan Semiconductor at the heart of this growth trend as the world's largest chip foundry, ensuring future revenue growth.
- Sustained Innovation Advantage: Taiwan Semiconductor's ongoing innovation in AI computing hardware will drive demand for more efficient and advanced hardware; although AI hardware has a relatively short lifespan, the need for replacements will always exist, providing a stable market foundation for the company.
- Attractive Valuation for Investment: With a PE ratio of 23.6, slightly above the market average, Taiwan Semiconductor remains a compelling investment option given its strong long-term AI growth potential, and is expected to outperform the market over the next decade.
See More
Micron and TSMC's Future Outlook Amid AI Boom
- Earnings Growth Potential: Micron Technology's stock has surged nearly 300% over the past year, compared to TSMC's 92% increase, indicating Micron's strong profitability amid rising AI demand, with continued growth expected into 2026.
- Market Competitive Advantage: As the world's largest contract chip manufacturer, TSMC is poised to maintain its leadership position due to its advanced manufacturing technology and ongoing price increase strategy, driving long-term revenue growth.
- Price and Supply-Demand Dynamics: The surge in demand for Micron's high-bandwidth memory chips has led to significant short-term earnings growth; however, increased competition and capacity expansion may lead to price declines, impacting future profitability.
- Valuation Comparison: Micron trades at a price-to-earnings ratio of just 6.5, while TSMC's ratio is nearly 24, suggesting that while Micron's current valuation appears fair, long-term investors may prefer TSMC's stable growth outlook.
See More
Investment Opportunities in Semiconductor Sector Amid AI Surge
- Profit Growth Drivers: Micron Technology's stock surged nearly 300% over the past year due to skyrocketing AI demand, while Taiwan Semiconductor Manufacturing Company (TSMC) saw a 92% increase, highlighting the semiconductor sector's robust performance amid the AI boom, attracting investor interest.
- Market Demand Analysis: As a major supplier of high-bandwidth memory (HBM) chips, Micron benefits from the significant demand for memory from GPUs and AI accelerators, achieving good growth in shipments despite facing pricing challenges, reflecting its critical position in the market.
- Technological Leadership: TSMC continues to expand its market share with its world-leading manufacturing technology, expected to maintain strong earnings growth in the coming years, especially after launching its latest N2 chip process, allowing it to sell products at higher prices and further solidifying its market position.
- Investment Value Comparison: While Micron's price-to-earnings ratio of 6.5 times suggests short-term appeal, its lack of long-term competitive advantage may lead to future earnings declines, whereas TSMC's long-term growth potential and stable earnings outlook make it appear more attractive in the current market.
See More
Ark Invest Significantly Reduces Tech Holdings
- Meta Platforms Reduction: Ark Invest sold 76,622 shares of Meta across multiple ETFs, valued at approximately $42 million, indicating a loss of confidence amid market fluctuations and a $6 million product liability verdict against the company.
- NVIDIA Position Cut: Ark reduced its NVIDIA holdings by 154,441 shares, totaling around $26.6 million, aligning with concerns over potential overvaluation in AI-centric firms, which could lead to significant market corrections.
- AMD and TSMC Sales: Ark sold 38,245 shares of AMD and 15,696 shares of TSMC, valued at approximately $7.8 million and $5.1 million respectively, reflecting challenges in the semiconductor industry, including rising prices and production capacity constraints.
- Alphabet and Netflix Cuts: Ark reduced its stake in Alphabet by 9,046 shares and Netflix by 6,775 shares, valued at approximately $2.5 million and $632,243 respectively, with Alphabet facing legal challenges and Netflix raising subscription prices due to content expansion.
See More
Elon Musk Unveils Terafab Semiconductor Vision
- Surging Chip Demand: Musk envisions a need for one terawatt of computing power annually, while the current global AI computing capacity stands at only 20 gigawatts, indicating a significant demand for semiconductor production that could intensify market competition.
- Tesla and SpaceX's Needs: Tesla and the soon-to-be-public SpaceX will be the primary users of Terafab chips, with Musk predicting that the Optimus robots will require 10 to 100 times the current chip demand, further driving the need for chips.
- Investment and Valuation Challenges: If Terafab were 50 times the size of TSMC, its potential value could reach $90 trillion; however, given the high costs and technological challenges of semiconductor manufacturing, investors must cautiously assess the feasibility of this vision.
- Technical and Talent Shortages: Achieving the goals of Terafab requires massive investment and top-tier talent, while the current technological barriers and talent competition in the semiconductor industry pose significant challenges that could impact the long-term growth of Tesla and SpaceX.
See More
Elon Musk Unveils Terafab Semiconductor Factory
- Semiconductor Production Challenge: Musk's introduction of Terafab aims for a terawatt of compute annually, while the current global AI computing capacity stands at only 20 gigawatts, highlighting a significant market demand and production gap that may attract investor interest.
- Tesla and SpaceX Demand: Tesla and the soon-to-be-public SpaceX will be the primary users of Terafab chips, with predictions that the Optimus robots will require 10 to 100 times more chips than Tesla's robotaxi fleet, indicating a massive future demand for chips.
- Technical and Financial Challenges: Manufacturing semiconductors at this scale presents enormous technical and financial hurdles, with estimated capital expenditures reaching $6 trillion, and even with improved efficiency, a $3 trillion investment would still be necessary, underscoring the project's high-risk nature.
- Cautious Investor Sentiment: While the vision for Terafab is enticing, investors should exercise caution when incorporating it into the valuations of Tesla and SpaceX, as the substantial investments and technological challenges suggest that any production or financial returns may take a long time to materialize.
See More
Taiwan Semiconductor: Surge in AI Chip Demand
- AI Chip Market Growth: Taiwan Semiconductor expects the AI chip market to grow at a mid- to high-50% CAGR from 2024 to 2029, representing a massive growth opportunity that will drive significant capital expenditures to increase chip production capacity, thereby solidifying its market leadership.
- Diverse Demand Support: As technologies like humanoid robots, autonomous driving, and drone delivery become more prevalent, chip demand will continue to rise, placing Taiwan Semiconductor at the heart of this growth trend as the world's largest chip foundry, ensuring future revenue growth.
- Sustained Innovation Advantage: Taiwan Semiconductor's ongoing innovation in AI computing hardware will drive demand for more efficient and advanced hardware; although AI hardware has a relatively short lifespan, the need for replacements will always exist, providing a stable market foundation for the company.
- Attractive Valuation for Investment: With a PE ratio of 23.6, slightly above the market average, Taiwan Semiconductor remains a compelling investment option given its strong long-term AI growth potential, and is expected to outperform the market over the next decade.
See More
Micron and TSMC's Future Outlook Amid AI Boom
- Earnings Growth Potential: Micron Technology's stock has surged nearly 300% over the past year, compared to TSMC's 92% increase, indicating Micron's strong profitability amid rising AI demand, with continued growth expected into 2026.
- Market Competitive Advantage: As the world's largest contract chip manufacturer, TSMC is poised to maintain its leadership position due to its advanced manufacturing technology and ongoing price increase strategy, driving long-term revenue growth.
- Price and Supply-Demand Dynamics: The surge in demand for Micron's high-bandwidth memory chips has led to significant short-term earnings growth; however, increased competition and capacity expansion may lead to price declines, impacting future profitability.
- Valuation Comparison: Micron trades at a price-to-earnings ratio of just 6.5, while TSMC's ratio is nearly 24, suggesting that while Micron's current valuation appears fair, long-term investors may prefer TSMC's stable growth outlook.
See More
Investment Opportunities in Semiconductor Sector Amid AI Surge
- Profit Growth Drivers: Micron Technology's stock surged nearly 300% over the past year due to skyrocketing AI demand, while Taiwan Semiconductor Manufacturing Company (TSMC) saw a 92% increase, highlighting the semiconductor sector's robust performance amid the AI boom, attracting investor interest.
- Market Demand Analysis: As a major supplier of high-bandwidth memory (HBM) chips, Micron benefits from the significant demand for memory from GPUs and AI accelerators, achieving good growth in shipments despite facing pricing challenges, reflecting its critical position in the market.
- Technological Leadership: TSMC continues to expand its market share with its world-leading manufacturing technology, expected to maintain strong earnings growth in the coming years, especially after launching its latest N2 chip process, allowing it to sell products at higher prices and further solidifying its market position.
- Investment Value Comparison: While Micron's price-to-earnings ratio of 6.5 times suggests short-term appeal, its lack of long-term competitive advantage may lead to future earnings declines, whereas TSMC's long-term growth potential and stable earnings outlook make it appear more attractive in the current market.
See More
Ark Invest Significantly Reduces Tech Holdings
- Meta Platforms Reduction: Ark Invest sold 76,622 shares of Meta across multiple ETFs, valued at approximately $42 million, indicating a loss of confidence amid market fluctuations and a $6 million product liability verdict against the company.
- NVIDIA Position Cut: Ark reduced its NVIDIA holdings by 154,441 shares, totaling around $26.6 million, aligning with concerns over potential overvaluation in AI-centric firms, which could lead to significant market corrections.
- AMD and TSMC Sales: Ark sold 38,245 shares of AMD and 15,696 shares of TSMC, valued at approximately $7.8 million and $5.1 million respectively, reflecting challenges in the semiconductor industry, including rising prices and production capacity constraints.
- Alphabet and Netflix Cuts: Ark reduced its stake in Alphabet by 9,046 shares and Netflix by 6,775 shares, valued at approximately $2.5 million and $632,243 respectively, with Alphabet facing legal challenges and Netflix raising subscription prices due to content expansion.
See More
Elon Musk Unveils Terafab Semiconductor Vision
- Surging Chip Demand: Musk envisions a need for one terawatt of computing power annually, while the current global AI computing capacity stands at only 20 gigawatts, indicating a significant demand for semiconductor production that could intensify market competition.
- Tesla and SpaceX's Needs: Tesla and the soon-to-be-public SpaceX will be the primary users of Terafab chips, with Musk predicting that the Optimus robots will require 10 to 100 times the current chip demand, further driving the need for chips.
- Investment and Valuation Challenges: If Terafab were 50 times the size of TSMC, its potential value could reach $90 trillion; however, given the high costs and technological challenges of semiconductor manufacturing, investors must cautiously assess the feasibility of this vision.
- Technical and Talent Shortages: Achieving the goals of Terafab requires massive investment and top-tier talent, while the current technological barriers and talent competition in the semiconductor industry pose significant challenges that could impact the long-term growth of Tesla and SpaceX.
See More
Elon Musk Unveils Terafab Semiconductor Factory
- Semiconductor Production Challenge: Musk's introduction of Terafab aims for a terawatt of compute annually, while the current global AI computing capacity stands at only 20 gigawatts, highlighting a significant market demand and production gap that may attract investor interest.
- Tesla and SpaceX Demand: Tesla and the soon-to-be-public SpaceX will be the primary users of Terafab chips, with predictions that the Optimus robots will require 10 to 100 times more chips than Tesla's robotaxi fleet, indicating a massive future demand for chips.
- Technical and Financial Challenges: Manufacturing semiconductors at this scale presents enormous technical and financial hurdles, with estimated capital expenditures reaching $6 trillion, and even with improved efficiency, a $3 trillion investment would still be necessary, underscoring the project's high-risk nature.
- Cautious Investor Sentiment: While the vision for Terafab is enticing, investors should exercise caution when incorporating it into the valuations of Tesla and SpaceX, as the substantial investments and technological challenges suggest that any production or financial returns may take a long time to materialize.
See More
