Investing in Taiwan Semiconductor Manufacturing (TSM): The Unbeatable Choice for AI Semiconductor Stocks
Introduction
If I could only own one semiconductor stock, this would be it. The artificial intelligence (AI) boom is far from over. The most recent quarterly earnings results from AI chip leader Nvidia (NASDAQ: NVDA) are a testament to that.
The Main Player: Taiwan Semiconductor Manufacturing (TSM)
The one AI semiconductor stock to buy right now is Taiwan Semiconductor Manufacturing (NYSE: TSM). TSMC is the largest contract chip manufacturer in the world and has a sustainable competitive advantage. It boasts big clients including Nvidia and Apple.
AI Impact and Future Growth
The growing use of AI relies on powerful and energy-efficient chip designs, an area where TSMC excels. Management projects substantial growth through 2027, with AI-related applications driving revenues to the high teens percentage.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.