2024-05-29 07:30:00 ET
Finding solid artificial intelligence (AI) investments doesn't necessarily mean picking a software company with the best technology. Instead, choosing a company like Taiwan Semiconductor Manufacturing (NYSE: TSM) that's supplying the lion's share of chips used in the hardware that creates AI models is also a great pick.
When investing in a company like Taiwan Semiconductor, also known as TSMC, you don't have to pick a winner since it will benefit regardless of which of its customers succeed. As a result, I think it's a stock that investors should be buying hand over fist right now.
TSMC is the world's largest contract chip manufacturer. It doesn't sell its chips out on the open market; instead, it is a foundry for companies that need chips. Sometimes, these clients are competitors, like Nvidia and Advanced Micro Devices . This neutral position is key to the TSMC investment thesis, allowing it to benefit from the rising tide of AI.
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1 Phenomenal Artificial Intelligence (AI) Stock to Buy Hand Over Fist