TSMC Expands Production Only 5% Quarterly, Conservative Strategy Prevents AI Bubble: Gavin Baker

On May 19, Gavin Baker, founder and chief investment officer of Atreides Management, stated that TSMC, led by executives in their 70s, expands production by only 5% per quarter. According to Baker, this conservative expansion strategy has prevented the artificial intelligence industry from forming a bubble, as historical technological breakthroughs have typically been accompanied by speculative excess. Baker attributed the difference this cycle to constraints in power supply and semiconductor wafer availability, with TSMC’s cautious approach being a key factor in maintaining that scarcity.