TAIPEI (TVBS News) — AI server and semiconductor sectors continue to attract investments as demand for advanced chips surges across industries. Notable Taiwanese firms, including Taiwan Semiconductor Manufacturing Company (TSMC, 台積電), MediaTek (聯發科), and Quanta (廣達) lead the charge. Concerns about a potential AI investment bubble loom as market fever intensifies. A-yueh (阿樂), a full-time investor, noted the AI sector faces potential short-term pullbacks despite long-run promise.
Jen-chen (任真), an investor, emphasized the importance of capital and risk management when investing in AI concept stocks. The market trades at historical highs with an uncertain future trajectory. Stocks in AI supply chains, including Nvidia, TSMC, and Foxconn (鴻海), have increased in value. Nvidia's investment in OpenAI, along with other purchases, has boosted demand for AI infrastructure. Analyst Weng Wei-chieh (翁偉捷) noted that OpenAI, the most prominent leader in the AI market, has been consistently losing money.
Weng noted OpenAI has been unable to push consumers to pay through its investments and capital expenditures. Weng said an AI bubble indeed exists. Hsieh Chin-ho (謝金河), chairman of Taiwan's Caixin Media (財信傳媒), a financial news outlet, warned a bubble could form without fundamental support. Stock prices lacking revenue and profit backing could lead to collapse.
AI's impact remains in its early stages, despite concerns about a bubble. Chen I-kuang (陳奕光), chairman of Fubon's (富邦) investment advisory services, believes the AI investment boom is just beginning. Chen said the stock market currently experiences a healthy correction. Young-way Liu (劉揚偉), chairman of Foxconn, emphasized Oct. 15 that AI development is in its infancy.
TSMC's US$160 billion (around NT$5.02 trillion) investment in a U.S. plant faces challenges. Rising production costs and a shortage of local engineers complicate the expansion. Weng added that the costs of setting up operations in the U.S. are generally much higher than those in Taiwan. Analysts noted the AI wave has launched a new tech boom.
Geopolitical shifts and supply chain restructuring make reliance on a single market risky for investors. Whether the AI wave is a bubble and when it will pop could have massive implications for Taiwan's economy. Questions remain about the sustainability of current AI investment levels. The semiconductor and AI sectors face a critical period as market dynamics evolve.◼