Investors are diversifying away from TSMC as the sole proxy for the artificial intelligence boom.
Traders are shifting capital into hardware and chip-related firms like MediaTek and Samsung Electronics. These companies have rallied over 140% this year. TSMC has gained approximately 46% during the same period.
Broadening AI applications drive demand for hardware beyond advanced chips, including memory, storage, and robotics. Institutional funds are also hitting single-stock limits due to TSMC’s heavy weighting in the Taiwanese market. These constraints force investors to seek alternative AI-linked assets to track market indices.