Taiwan Semiconductor in the Spotlight of the AI Revolution

Artificial intelligence has conquered the financial world, and with its growing popularity, expectations for its revenues have risen rapidly. Since the spectacular introduction of ChatGPT by OpenAI at the end of 2022, interest in AI startups and their stocks has skyrocketed. Particularly, OpenAI, with a valuation exceeding $150 billion, has caught the attention of investors and recently raised over $6.6 billion in a funding round from prominent investors such as Thrive Capital and Tiger Global. This incredible growth is based on their projection of generating more than $3.5 billion in revenue this year, with an impressive target of over $11 billion by 2025. An analysis by the fintech firm Stripe supports the meteoric rise of AI startups compared to previous technology waves. According to Stripe, leading AI companies reached million-dollar revenues within a year, a pace that seemed unattainable for previous technology groups. They owe the faster monetization to the immediate coverage of computing costs and the necessity to quickly establish revenue streams. Amidst this boom, Taiwan Semiconductor Manufacturing Company (TSM) is also in the spotlight. With a recent partnership with Amkor to develop advanced packaging and testing technologies in Arizona, TSM aims to serve essential markets such as high-performance computing and communication. The collaboration highlights technologies like Integrated Fan-Out (InFO) and Chip on Wafer on Substrate (CoWoS), which are intended to offer customer-oriented solutions. Despite these activities, TSM ranks 12th among trending AI stocks, indicating that some other AI companies are currently sparking higher return expectations. Overall, the dynamic development in the field of artificial intelligence reflects enormous investment opportunities, while companies like TSM are shaping evolutionary trends in semiconductor and AI technology.