"Taiwan Semiconductor Manufacturing , also known as TSMC, is one of the most important AI stocks on the market, and it's growing rapidly. However, it trades at a cheap price, making it look like an incredible value. It's not as "hot" as some of the AI stocks producing the technology that's literally revolutionizing the world, which is why it may fall out of the view of AI investors."
"At the top of that list is that it works with a large group of AI chip designers, so all of its eggs are spread out into different baskets. It's a chip foundry, and it manufactures the chips that other companies like Nvidia and Advanced Micro Devices design. It's an essential part of the chipmaking process, and its clients need its services to keep producing their chips, which are in high demand right now."
Artificial intelligence has helped push the stock market to new highs and remains in early stages of driving major sales and earnings growth for leading companies. Taiwan Semiconductor Manufacturing (TSMC) serves as a critical behind-the-scenes AI company by operating as a chip foundry that produces processors designed by firms such as Nvidia and Advanced Micro Devices. TSMC works with a broad group of chip designers, diversifying exposure across smartphones, automotive, and gaming markets while benefiting from strong AI-driven demand. The company trades at a relatively low valuation, is highly profitable, and reported revenue growth of 44% year over year in the second quarter.
Read at The Motley Fool
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