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The artificial intelligence (AI) industry relies on advanced semiconductor chips sold by companies like Nvidia.
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A company is a world leader in the manufacturing of AI chips.
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Following the strong demand for AI, this company, popularly known as TSMC, is expanding its operations.
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10 stocks we like better than Taiwan Semiconductor Manufacturing ›
The hot field of artificial intelligence (AI) has boosted the fortunes of many companies. Perhaps the most famous example is that of the leader in semiconductor chips. NVIDIA. It’s a great AI company to invest in, but it’s far from the only one.
Another compelling AI stock to consider is Semiconductor manufacturing in Taiwan (NYSE: TSM)commonly known as TSMC. Nvidia is one of its clients, as is its main competitor. amd.
Many reasons make TSMC one of the top AI stocks to buy now. Below we present some of them to explain why it is a worthwhile investment.
TSMC plays a pivotal role in the AI industry. It manufactures advanced semiconductor chips sold by Nvidia and AMD, and is the world’s leading foundry in this area.
As a result, TSMC’s sales are soaring. In the third quarter, the company reported revenue of 989.9 billion new Taiwan dollars ($33.1 billion), an impressive 30% year-over-year increase. This contributed to a 39% year-on-year growth in diluted earnings per share (EPS) to NT$17.44 ($2.92).
In fact, with the advent of AI, shareholders have been rewarded by TSMC’s rising EPS in recent years.
Given its leadership in AI chip manufacturing, TSMC is well positioned to see continued growth. Customer demand is such that the company is building three new foundries in the US, as well as packaging and R&D facilities, for a total of $165 billion in investment.
TSMC stock can be bought now due to its share price appreciation. Its price-to-earnings (P/E) ratio is notably lower than Nvidia and AMD.
This indicates that TSMC stock has an attractive valuation compared to its prominent AI peers. It is also much more reasonable than the rival. Intelthat has a P/E multiple greater than 4,000.
Combined with rising sales, EPS, and ongoing business expansion, TSMC looks like a great long-term investment in AI.
Before you buy shares in Taiwan Semiconductor Manufacturing, consider this:
He Varied and Dumb Stock Advisor The analyst team has just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing was not one of them. The 10 stocks that made the cut could produce monster returns in the coming years.