From Financial Modeling Prep: 2025-02-03 02:18:58

Shares of Taiwan Semiconductor Manufacturing Company (TSMC) dropped by 6.6% in Taipei, continuing previous losses. Concerns over China’s DeepSeek R1 AI model impacting AI infrastructure investments have led to uncertainty in the semiconductor market. Nvidia’s market value fell by $600 billion, with the broader tech market losing $1 trillion in the past week.

TSMC, a key player in the AI supply chain, faces challenges as more cost-effective AI models like DeepSeek emerge. The traditional reliance on expensive chipmaking processes is being questioned, leading to declines in TSMC and Nvidia. The market is reevaluating the need for large-scale investments in AI infrastructure.

The shift towards more efficient and budget-friendly AI systems is reshaping the market. Companies like TSMC must adapt to meet changing demands. Investors should monitor how chipmakers respond to these shifts, as their financial health is tied to the evolution of AI infrastructure.



Read more at Financial Modeling Prep:: TSMC’s Share Decline Amid Growing AI Competition