GPU, another IOT?
TSMC claims working with all the customers so that we know the demand is true. TSMC seeing the demand is true due to a lot of customers are coming TSMC asking for capacity.
this is by far the most persuasive methodology that saying every customer are working with them, and are having the broadest and deepest view.
However, seems no one had remembered that IOT was also described as an hot topic, but no one cares anymore. now only accounts 7%.
What will happen if all the demand of GPU 1) crushed, or disappear, 2) commoditized, if we dont need anything that is as big die size or can be replaced by things that are using right now, such as current smartphone AP capacity that replaced the GPU demand, might see a lot of capacity redundant eventually.
long-term CAGR refuse to guide, I assume to be below 15-20%, as 2024 y/y are too strong already, the growth might not sustain.
AMD are guiding CAGR to be 70+% y/y in 2023-2027.
Client's pressure forming a margin cap?
Client margin, 75% from NVDA, TSMC gross margin improved from 53.2% to 57.8%.