Heavy use of leverage to buy AI-linked shares could amplify market swings if TSMC's growth loses momentum, the report says.
Taiwanese investors are borrowing aggressively to gain exposure to the AI stock rally driven by TSMC, increasing the market's reliance on leverage. The report says that buildup could heighten volatility if TSMC's growth weakens, because debt-funded positions can force faster selling when sentiment turns. The dynamic underscores how concentrated enthusiasm around AI-related equities can become a broader market risk when borrowing is heavily involved.