The Chip Insider®– AI’s Technology Treadmill Business Model. TSMC’s Gross Margin.
Author: G. Dan Hutcheson
Explore the latest Chip Insider insights. Reflecting on AI's technology treadmill business model and why the AI revolution is not coming to an end.
Why the AI revolution is not about to come to an end… Nvidia keeps growing while investors wonder when it will stop. The hyperscalers keep raising AI capex with few clear paths to monetization, much less profitability, while investors wonder when it will stop. Investment analysts keep saying the AI revolution must pause or stop. The Hypervertical’s technology treadmill is why AI investments will continue…
Dan, Good insight about TSMC's upward-spiraling gross margin. Much of a fab cost is the tooling; and much of the tooling cost is the lithography. Would your analysis be that TSMC needs high margins, in part, because ASML has them? …
“No computer is ever going to ask a new, reasonable question. It takes trained people to do that." — Grace Hopper
