TSMC Stock Dips Amid Record US Investment in Taiwan, AI Slowdown Concerns Loom
US holdings in Taiwan equities surged to a record $668 billion, yet TSMC shares fell as volatility and geopolitical risks rattled investors. The semiconductor giant, which represents 40% of Taiwan's benchmark Taiex index, saw its stock decline despite institutional heavyweights like Vanguard and BlackRock holding significant stakes.
Artificial intelligence has been a key driver of capital inflows, with Taiwan's chipmakers supplying critical components for AI applications. However, analysts warn that any slowdown in AI-related spending could exacerbate pressure on the sector. Trade agreements between the US and Taiwan continue to fuel investment, but also heighten market uncertainty.