Taiwan's central bank governor warns of AI bubble risks despite real growth

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Taiwan's central bank governor Yang Chin-long warned that the AI boom carries the risk of creating a bubble as companies take on more debt to finance aggressive investment. Speaking at a parliamentary hearing on Thursday, Yang said AI is driven by real growth potential but the possibility of over-expansion via over-leveraging concerns the central bank. He noted the central bank's decision in June to leave interest rates unchanged was appropriate because inflationary pressures were not strong enough to warrant a rate hike, though the decision was not unanimous. Taiwan plays a pivotal role in the global AI supply chain through chipmakers led by Taiwan Semiconductor Manufacturing Co., which has helped lift Taiwanese stocks to record highs this year, with the TAIEX up roughly 50% so far.

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Semiconductors▼ · 2 stocks
NVIDIA Corporation
NVDA
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Central bank warns of AI bubble risk from over-leveraging, which could affect AI-related companies like NVIDIA

Artificial Intelligence▲ · 1 stocks

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