TSMC Named Neutral Foundry Play for May on AI, Data Center Growth
Taiwan’s president used an 'arrive then announce' flight to Eswatini after China pressured nations to revoke his overflight rights, intensifying diplomatic friction and raising export risk. Analysts name Taiwan Semiconductor Manufacturing a neutral foundry play for May, citing surging AI spending, data center build-out and 72% projected growth for Nvidia.
1. TSMC Included in Top Five May Stock Picks
Analysts included Taiwan Semiconductor Manufacturing in their top five stock picks for May as a neutral foundry play, citing expected demand from AI applications, accelerating data center build-out and comparative growth forecasts such as Nvidia’s 72% and Broadcom’s 63%.
2. AI Spending and Data Center Build-Out Drive Demand
Industry forecasts point to significant increases in chip orders for advanced process nodes, with AI training and inference workloads requiring high-performance processors. TSMC’s capacity at 5nm and 3nm nodes is poised for higher utilization as hyperscalers ramp up server builds.
3. Geopolitical Visit Raises Export Risk
Taiwanese President Lai Ching-te’s clandestine flight to Eswatini, employing an 'arrive then announce' model after China pressured nations to revoke overflight rights, underscores escalating diplomatic tension. This heightens political risk for Taiwanese exporters like TSMC and potential supply chain disruptions.