Wall Street skeptical of TSMC's $100 billion AI expansion bet

TSMC, the Taiwanese semiconductor giant, announced a $100 billion investment program to expand production capacity to meet soaring demand for artificial intelligence chips. However, Wall Street analysts and investors reacted with caution, questioning whether the market might overheat and whether such spending could lead to an industry-wide overcapacity problem. Some experts warn that the AI investment cycle could slow down faster than TSMC's new facilities come online. Supporters of the move, however, point to sustained long-term demand from the company's major tech clients. For retail investors, the news is a significant signal about the world's largest chipmaker's confidence in the continued AI boom.