(Bloomberg) — The frenzy over artificial intelligence is trumping geopolitical concerns over Taiwan Semiconductor Manufacturing Co., with its record stock rally powering ahead.
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Foreign investors have boosted ownership of the stock to a two-year high, backing claims by TSMC that AI will be its biggest growth driver this year. The company has more than a 90% share in manufacturing advanced semiconductors used for AI, according to Pictet Asset Management.
The turnaround last year — the stock had plunged 27% in 2022 — came after Warren Buffett sold his $5 billion TSMC holdings, citing geopolitical tensions as the reason given its location. Adding to the concerns, the self-governing island elected a US-friendly president Lai Ching-te, putting in power a man Beijing has described as an “instigator of war.”
“While geopolitics have historically been perceived…
