With a decline in AI computing investments, major manufacturers such as Quanta, Foxconn, Wistron, and Gigabyte are on high alert. President Trump’s tariff policies have caused concerns over a global economic slowdown, significantly impacting Taiwan’s AI stocks, which were previously thriving.

Investigations suggest that these AI companies are not only facing uncertainties related to tariffs but are also hit by export bans on AI chips and a cooling investment trend. Companies are competing fiercely on price, turning the AI server market into a battleground. An industry leader expressed concerns, stating, “Profit margins are expected to drop to 3-4%.”

Additionally, the U.S.-China trade war has reignited, placing AI chip issues at the center of attention. AMD’s CEO, Lisa Su, visited Taiwan recently, indicating a strong commitment to collaborate effectively with partners to address supply chain challenges. However, the U.S. Department of Commerce announced that certain AI chip exports require permission, leading to losses of up to $5.5 billion for Nvidia and putting significant strain on Taiwanese AI server manufacturers.