Morgan Stanley: Strong AI spending by American tech giants bodes well for TSMC

Morgan Stanley's research report states that the strong AI capital expenditures of Meta and Microsoft are expected to alleviate concerns about the demand for Taiwan Semiconductor chips. Meta has increased its annual capital expenditures to $64-72 billion, while Microsoft has hinted at continued strong AI demand. Morgan Stanley predicts that by 2025, the contribution of the cloud semiconductor business to Taiwan Semiconductor's revenue will increase from 13% in 2024 to 25%. These analysts suggest that including network chips and CPUs for AI servers, the contribution of AI to Taiwan Semiconductor's revenue should exceed 30% from 2025 onwards.