Taiwan Semiconductor Manufacturing Company (TSMC) remains a key producer of Nvidia’s advanced GPUs and continues to benefit from rising AI demand, with shares up about 44-46% so far this year [1, 2]. However, investors are diversifying their holdings away from TSMC to other technology companies linked to AI, driven by investment caps on single stocks and growing retail interest in Asian tech alternatives [1, 2].
MediaTek and Samsung Electronics have outperformed TSMC significantly in 2026, posting share price gains near 140-150% compared to TSMC’s 44-46% increase [1, 2]. Samsung has recently closed the market valuation gap with TSMC, joining the US$1 trillion market cap club alongside TSMC, signaling its rising prominence in the sector [1, 2]. MediaTek is also attracting investor attention as a chip designer collaborating with Alphabet to develop AI-specific processors [1, 2].
Jason Hsu, Chief Investment Officer at Rayliant Global Advisors, described the trend as a "structural diversification away from TSMC," noting that "new capital being raised in funds is disproportionately going to other tech companies which also benefit from the record AI capex" [1, 2].
While TSMC focuses on leading-edge GPU fabrication, there is growing demand for less-sophisticated CPUs needed to support expanding AI workloads. Foundries operated by Samsung, Intel, and TSMC produce these CPUs, broadening the market [2]. Brian Ooi, Portfolio Manager at Swiss-Asia Financial Services, said, "Agentic AI is driving a broadening of the AI trade because agents will require more CPUs" [2].
On May 22, a report highlighted TSMC’s dominant role as Nvidia’s GPU manufacturer but also noted shifting investment trends favoring other AI-related tech companies [1].
Investors continue to evaluate Asian tech stocks amid these trends, with many balancing TSMC’s steady gains against the stronger performances of Samsung and MediaTek.
