According to the Morgan Stanley Research Report, Meta and Microsoft's strong AI capital spending should dispel concerns about demand for TSMC chips. Meta raised annual capital expenditure to $64 billion to $72 billion, while Microsoft suggests AI demand is still strong. Morgan Stanley expects the cloud semiconductor business's contribution to TSMC's revenue to rise to 25% in 2025 from 13% in 2024. Including network chips and CPUs used in AI servers, AI should contribute more than 30% to TSMC's revenue from 2025, according to these analysts.

According to the Morgan Stanley Research Report, Meta and Microsoft's strong AI capital spending should dispel concerns about demand for TSMC chips. Meta raised annual capital expenditure to $64 billion to $72 billion, while Microsoft suggests AI demand is still strong. Morgan Stanley expects the cloud semiconductor business's contribution to TSMC's revenue to rise to 25% in 2025 from 13% in 2024. Including network chips and CPUs used in AI servers, AI should contribute more than 30% to TSMC's revenue from 2025, according to these analysts.