The Hidden Backbone of the AI Boom

The Smart Investor

Oct 26

When most people hear “AI investing,” their minds jump straight to the big names. OpenAI. ChatGPT. Maybe Microsoft (NASDAQ: MSFT) or Google. But here’s the thing: the companies making headlines aren...

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Maybe Microsoft (NASDAQ: MSFT) or Google.\n\nBut here’s the thing: the companies making headlines aren...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/the-hidden-backbone-of-the-ai-boom/\">Source Link</a>\n\n</div>\n","source":"thesmartinvestor_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>The Hidden Backbone of the AI Boom</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThe Hidden Backbone of the AI Boom\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-10-26 11:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://thesmartinvestor.com.sg/the-hidden-backbone-of-the-ai-boom/><strong>The Smart Investor</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>When most people hear “AI investing,” their minds jump straight to the big names.\n\nOpenAI. ChatGPT. Maybe Microsoft (NASDAQ: MSFT) or Google.\n\nBut here’s the thing: the companies making headlines aren...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/the-hidden-backbone-of-the-ai-boom/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0056508442.USD","symbol_name":"贝莱德世界科技基金A2","start_time":0,"source_url":"https://thesmartinvestor.com.sg/the-hidden-backbone-of-the-ai-boom/","article_id":"2578404682","we_media_id":null,"thumbnails":["https://thesmartinvestor.com.sg/wp-content/uploads/2025/10/TSMC-300x200.png"],"rights":{"source":"thesmartinvestor_highlight","url":"https://thesmartinvestor.com.sg/the-hidden-backbone-of-the-ai-boom/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2578404682","pubTimestamp":1761449400,"columns":[],"sourceInfo":{"source_id":"thesmartinvestor_highlight","name":"The Smart Investor"},"weMediaInfo":null,"summary":"Forget the AI headlines; the entire revolution runs on chips made by one company.","collect":0,"end_time":0,"defaultTopTitle":"thesmartinvestor.com.sg","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0056508442.USD":"贝莱德世界科技基金A2","03145":"华夏亚洲高息股","TQQQ":"纳指三倍做多ETF","LU1032466523.USD":"高盛全球多资产收益组合Acc","NVDD":"Direxion Daily NVDA Bear 1X Shares","NVDA":"英伟达","LU2125154935.USD":"ALLSPRING (LUX) WF GLOBAL EQUITY ENHANCED INCOME \"I\" (USD) INC","QID":"纳指两倍做空ETF","NVD2.UK":"2X NVIDIA ETP","SNVD.UK":"LS -1X NVIDIA","LU1923622614.USD":"Natixis Thematics Meta R/A USD","NVD3.UK":"LS 3X NVIDIA","NVIW.SI":"NVDA 3xLongSG261006","2NVD.UK":"2X NVIDIA ETP","TSYW.SI":"TESLA 3xLongSG261006","NVDS.UK":"LS -1X NVIDIA","NVDS":"Tradr 1.5X Short NVDA Daily ETF","AI":"C3.ai, Inc.","SG9999014567.USD":"UOB UNITED INCOME FOCUS TRUST FUND (USD) ACC","LU1430594728.SGD":"Eastspring Investments - Global Low Volatility Equity AS SGD","PSQ":"纳指反向ETF",".IXIC":"NASDAQ Composite","CSCO":"思科","NVDU":"Direxion Daily NVDA Bull 2X Shares","LU1267930573.SGD":"TEMPLETON GLOBAL \"AA\" (SGD) ACC A","SQQQ":"纳指三倍做空ETF","LU0158827781.USD":" ALLIANZ GLOBAL SUSTAINABILITY \"AT\" (USD) ACC","3NVD.UK":"LS 3X NVIDIA","MACW.SI":"APPLE 3xLongSG261006","USJW.SI":"ALPHAB 3xLongSG261006","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","USAW.SI":"AMZN 3xLongSG261006","TSM":"台积电","NVDX":"T-REX 2X LONG NVIDIA DAILY TARGET ETF","NVD":"GraniteShares 2x Short NVDA Daily ETF","NVDY":"YIELDMAX NVDA OPTION INCOME STRATEGY ETF","QLD":"纳指两倍做多ETF"},"translate_title":"人工智能热潮的隐藏支柱","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{".IXIC":0.9,"03145":0.6,"2NVD.UK":0.6,"3NVD.UK":0.6,"AI":0.9,"CSCO":1,"MNQmain":0.6,"NQmain":0.6,"MACW.SI":0.6,"NVD":0.6,"NVD2.UK":0.6,"NVD3.UK":0.6,"NVDA":1,"NVDD":0.6,"NVDS":0.6,"NVDS.UK":0.6,"NVDU":0.6,"NVDX":0.6,"NVDY":0.6,"NVIW.SI":0.6,"PSQ":0.6,"QID":0.6,"QLD":0.6,"SNVD.UK":0.6,"SQQQ":0.6,"TQQQ":0.6,"TSM":1,"TSYW.SI":0.6,"USAW.SI":0.6,"USJW.SI":0.6},"content_text":"When most people hear “AI investing,” their minds jump straight to the big names.\n\nOpenAI. ChatGPT. Maybe Microsoft (NASDAQ: MSFT) or Google.\n\nBut here’s the thing: the companies making headlines aren’t the only ones making money.\n\nIn fact, some of the biggest winners are the ones you rarely see in the news.\n\nThey’re the ones building the picks and shovels of the AI gold rush.\n\nWhy infrastructure matters\nThink about the early days of the internet. \n\nThe dot-com companies came and went. \n\nBut the businesses that laid the pipes, made the servers, or built the chips? \n\nThey became giants.\n\nCisco (NASDAQ: CSCO) supplied the routers. \n\nAmazon (NASDAQ: AMZN) built the cloud.\n\nAI is going through the same cycle now. Behind every viral chatbot and breakthrough demo is a foundation of computing power that makes it all possible.\n\nAnd one company is emerging as a critical player: Taiwan Semiconductor Manufacturing Company (NYSE: TSM) or TSMC.\n\nWhat TSMC really does\nTSMC isn’t designing the AI models you use. It isn’t building the flashy apps that go viral.\n\nWhat it does is far more fundamental.\n\nTSMC manufactures the chips that power those models. \n\nNvidia (NASDAQ: NDVA) might get the glory for its graphics processors. Apple (NASDAQ: AAPL) might make headlines for its sleek iPhones. \n\nBut without TSMC producing those chips at scale, none of it happens.\n\nIn plain English: if AI is the race car, TSMC is the only factory capable of producing the engines at the volume and quality the world needs.\n\nThe numbers tell the story\nHere’s why investors are paying attention.\n\nTSMC’s high-performance computing segment — the part tied most closely to AI chips — has grown so fast it has overtaken its smartphone segment for the first time.\n\nAI “accelerator” revenue (think Nvidia chips rolling off TSMC’s production lines) more than tripled last year. \n\nAnd TSMC expects that figure to double again in 2025. Looking further out, management is forecasting mid-40% annual growth in this segment through 2029.\n\nThat’s a staggering trajectory, especially for a company already producing at a global scale.\n\nWhy TSMC is hard to replace\nWhat truly sets TSMC apart is the combination of scale, technology, and customer reliance that no other chipmaker has managed to replicate. \n\nIts chipmaking plants cost tens of billions of dollars each, and no competitor comes close to matching its efficiency at the most advanced production levels. \n\nOn top of that, TSMC has maintained a clear technology lead. \n\nIt is already mass-producing 3-nanometre chips and is preparing to move to 2-nanometre, while most rivals are still playing catch-up.\n\n\nThis leadership has created a powerful lock-in effect with customers. \n\nIndustry giants such as Nvidia (NASDAQ: NVDA), Apple, AMD (NASDAQ: AMD), Qualcomm (NASDAQ: QCOM), Google, Amazon, and even Tesla (NASDAQ: TSLA) all depend heavily on TSMC’s output. \n\nFor these companies, switching suppliers would not just be inconvenient. It would set back their product timelines by years.\n\nLayered on top of this is a geopolitical dimension. \n\nWhile competitors like Intel (NASDAQ: INTC) and Samsung are struggling to close the gap, the sheer expertise, ecosystem, and trust that TSMC has built over decades are not easily copied. \n\nThat makes it more than just a supplier. \n\nFor the global AI boom, it is an indispensable partner.\n\nWhy this matters for investors\nThe obvious takeaway is that demand for AI isn’t slowing. \n\nIf anything, it’s accelerating. \n\nAnd chipmakers like TSMC are positioned right in the middle of that demand.\n\nBut the hidden point is this: while app makers may rise and fall, the infrastructure layer is much harder to replace.\n\nEvery major AI player — Nvidia, Apple, Google, Meta, Microsoft, Amazon — relies on TSMC to produce the hardware. \n\nThat kind of lock-in makes TSMC less of a speculative bet and more of a backbone business.\n\nThe bigger picture\nYes, AI headlines grab attention with demos, viral chatbots, or new product launches. \n\nBut history shows that the biggest, most durable returns often come from the companies working quietly behind the scenes — the ones selling the essentials every other player depends on.\n\nThat’s why smart investors aren’t just watching consumer apps. They’re looking closely at the infrastructure.\n\nAnd right now, TSMC is at the heart of that story.\n\nGet Smart: How Singapore investors can gain exposure\nFor investors here in Singapore, owning a stake in TSMC isn’t as straightforward as buying a local blue-chip on the SGX. But there are several ways to get exposure.\n\nThe most direct route is through TSMC’s American Depositary Receipts (ADRs), which trade on the New York Stock Exchange under the ticker TSM. This gives you ownership in the company itself and direct participation in its growth.\n\nThere’s also an indirect path. \n\nMany of the biggest customers are relying on TSMC, from Nvidia and Apple to Microsoft and Amazon. These companies are listed on US markets. \n\nOwning these companies means you’re still benefiting from TSMC’s production dominance, albeit one step removed.\n\nIf you want to see which other companies could be the “backbone winners” of the AI revolution, we’ve put together a free report that breaks it down in detail.\n\nGenerative AI is reshaping the stock market, but not in the way most investors think. It’s not just about which companies are using AI. It’s about how they’re using it to unlock new revenue, dominate their markets, and quietly reshape the business world. Our latest FREE report “How GenAI is Reshaping the Stock Market” breaks the hype down, so you can invest with greater clarity and confidence. Click here to download your copy today.\n\nFollow us on Facebook, Instagram and Telegram for the latest investing news and analyses!\n\nDisclosure: Alex does not own any of the stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}