Most of the money is not made by buying gold during a gold rush, but rather by selling shovels to all those frantically digging. Every once in a while (or sometimes twice) in an economic cycle, a new gold rush comes about, and with it a new set of shovel makers who quietly make all the big money.
Today, the “gold” is AI-driven chips, and the “shovel makers” are the wafer equipment providers and foundry specialists.
Hyperscaler spending (think cloud giants and AI leaders) has surpassed the $1 trillion mark, mainly due to an increasing number of companies adopting an “AI-first” approach in their business models. What this means is that demand for chips and semiconductors is soaring. Holding over 75% of this entire market is a not-so-little company called Taiwan Semiconductor Manufacturing (NYSE: TSM), and one of its biggest customers just gave everyone a reason to buy it today.
