Why Taiwan Semiconductor (TSM) Among the Best Semiconductor Stocks to Buy for the AI Boom

Insider Monkey05:48

We recently compiled a list of the 10 Best Semiconductor Stocks to Buy for the AI Boom. In this article, we are going to take a look at where Taiwan Semiconductor Manufacturing Company Limited (NYSE:...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2505470491?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2025-01-23 05:48","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2505470491","market":"us","top_or_hot":-1,"title":"Why Taiwan Semiconductor (TSM) Among the Best Semiconductor Stocks to Buy for the AI Boom","media":"Insider Monkey","content":"<div>\n<p>We recently compiled a list of the 10 Best Semiconductor Stocks to Buy for the AI Boom. In this article, we are going to take a look at where Taiwan Semiconductor Manufacturing Company Limited (NYSE:...</p>\n\n<a href=\"https://finance.yahoo.com/news/why-taiwan-semiconductor-tsm-among-214831852.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Taiwan Semiconductor (TSM) Among the Best Semiconductor Stocks to Buy for the AI Boom</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Taiwan Semiconductor (TSM) Among the Best Semiconductor Stocks to Buy for the AI Boom\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-01-23 05:48 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/why-taiwan-semiconductor-tsm-among-214831852.html><strong>Insider Monkey</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>We recently compiled a list of the 10 Best Semiconductor Stocks to Buy for the AI Boom. In this article, we are going to take a look at where Taiwan Semiconductor Manufacturing Company Limited (NYSE:...</p>\n\n<a href=\"https://finance.yahoo.com/news/why-taiwan-semiconductor-tsm-among-214831852.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1989764748.USD","symbol_name":"东方汇理环球颠覆性机遇A2 Acc","start_time":0,"source_url":"https://finance.yahoo.com/news/why-taiwan-semiconductor-tsm-among-214831852.html","article_id":"2505470491","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2505470491","pubTimestamp":1737582511,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"More than two years have passed since the proliferation of the disruptive Artificial Intelligence  megatrend, symbolically marked by the launch of OpenAI’s revolutionary product – ChatGPT. Since then, the AI revolution has accelerated rapidly, with 2023 and 2024 seeing a surge in demand for advanced AI applications across industries. This transformation has driven companies to increasingly rely on robust data centers that can support the computational power required by the intelligent algorithms.In tandem with the rise of AI, the data center sector has experienced substantial growth. The need for larger, more efficient, and scalable data storage and processing capabilities has created a boom in infrastructure investments. Data centers, which house the powerful servers needed for AI workloads, have become critical enablers of this technology's expansion. This increase in demand for data center capacity is a key factor that has propelled semiconductor stocks, as these centers rely heavil","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1989764748.USD":"东方汇理环球颠覆性机遇A2 Acc","LU0572939691.SGD":"Janus Henderson Horizon Asian Dividend Income A2 SGD","IE00BYQQ9H92.USD":"BNY MELLON GLOBAL LEADERS \"A\" (USD) ACC","IE00BDRTCR15.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"ADC\" (USD) INC A","LU0096362180.USD":"CT (LUX) I GLOBAL FOCUS \"DU\" (USD)","NVIW.SI":"NVDA 3xLongSG261006","2NVD.UK":"2X NVIDIA ETP","LU2063271972.USD":"富兰克林创新领域基金","LU0488056044.USD":"Allianz Asian Multi Income Plus Cl AM DIS USD","LU2237957811.SGD":"NIKKO AM GLOBAL EQUITY \"F\" (SGD) ACC","LU0057025933.USD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"AX\" (USD) ACC","LU0143863198.USD":"CT (LUX) I GLOBAL EMERGING MARKET EQUITIES\"AU\" (USD) ACC","SG9999015978.USD":"利安颠覆性创新基金A","NVD2.UK":"2X NVIDIA ETP","BK4554":"元宇宙及AR概念","BK4532":"文艺复兴科技持仓","NVD":"GraniteShares 2x Short NVDA Daily ETF","LU2361045086.USD":"WELLINGTON US QUALITY GROWTH \"A\" (USD) ACC","NVD3.UK":"LS 3X NVIDIA","SNVD.UK":"LS -1X NVIDIA","LU0444971666.USD":"天利全球科技基金","NVDD":"Direxion Daily NVDA Bear 1X Shares","NVDS.UK":"LS -1X NVIDIA","LU2552382215.SGD":"WELLINGTON US BRAND POWER \"A\" (SGDHDG) ACC","LU1211504680.USD":"ALLIANZ HIGH DIVIDEND ASIA PACIFIC EQUITY \"AM\" (USD) INC","LU0069063385.USD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (USD) ACC","LU1496350171.SGD":"FRANKLIN DIVERSIFIED BALANCED \"A\" (SGDHDG) ACC","TSM":"台积电","NVDS":"Tradr 1.5X Short NVDA Daily ETF","03145":"华夏亚洲高息股","NVDU":"Direxion Daily NVDA Bull 2X Shares","LU2250418816.HKD":"BGF WORLD TECHNOLOGY \"A\" (HKD) ACC","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","NVDA":"英伟达","LU2108987350.USD":"UBS (LUX) EQUITY SICAV GLOBAL OPPORTUNITY SUSTAINABLE (USD) \"P\" (USD) ACC","LU1435385759.SGD":"Natixis Loomis Sayles US Growth Equity RA SGD-H","NVDX":"T-REX 2X LONG NVIDIA DAILY TARGET ETF","LU0444973449.USD":"CT (LUX) I GLOBAL TECHNOLOGY \"DU\" (USD) ACC","LU2461242641.AUD":"WELLINGTON US QUALITY GROWTH \"A\" (AUDHDG) ACC","LU0082616367.USD":"摩根大通美国科技A（dist）","LU2430703251.USD":"WELLINGTON MULTI-ASSET HIGH INCOME \"AM4\" (USD) INC","NVDY":"YIELDMAX NVDA OPTION INCOME STRATEGY ETF","LU0823414551.USD":"BNP PARIBAS ENERGY TRANSITION \"C\" (USD) INC","3NVD.UK":"LS 3X NVIDIA","LU2125154778.USD":"ALLSPRING GLOBAL EQUITY ENHANCED INCOME \"A\" (USD) INC","LU1037948897.HKD":"AB LOW VOLATILITY EQUITY PORTFOLIO \"AD\" (HKD) INC","LU1712237335.SGD":"Natixis Mirova Global Sustainable Equity H-R-NPF/A SGD","LU1989764664.SGD":"CPR Invest - Global Disruptive Opportunities A2 Acc SGD-H","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC"},"translate_title":"为什么台积电(TSM)是人工智能热潮中最值得买入的半导体股票之一","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TSM":1,"NVDA":0.9,"NVD":0.6,"NVD2.UK":0.6,"NVD3.UK":0.6,"NVDD":0.6,"NVDS":0.6,"NVDS.UK":0.6,"NVDU":0.6,"NVDX":0.6,"NVDY":0.6,"NVIW.SI":0.6,"SNVD.UK":0.6,"2NVD.UK":0.6,"3NVD.UK":0.6,"03145":0.6},"content_text":"We recently compiled a list of the 10 Best Semiconductor Stocks to Buy for the AI Boom. In this article, we are going to take a look at where Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stands against the other semiconductor stocks.\nMore than two years have passed since the proliferation of the disruptive Artificial Intelligence (AI) megatrend, symbolically marked by the launch of OpenAI’s revolutionary product – ChatGPT. Since then, the AI revolution has accelerated rapidly, with 2023 and 2024 seeing a surge in demand for advanced AI applications across industries. This transformation has driven companies to increasingly rely on robust data centers that can support the computational power required by the intelligent algorithms.\nIn tandem with the rise of AI, the data center sector has experienced substantial growth. The need for larger, more efficient, and scalable data storage and processing capabilities has created a boom in infrastructure investments. Data centers, which house the powerful servers needed for AI workloads, have become critical enablers of this technology's expansion. This increase in demand for data center capacity is a key factor that has propelled semiconductor stocks, as these centers rely heavily on cutting-edge semiconductors to deliver the speed, efficiency, and power necessary to process vast amounts of data in real time.\nOur Methodology\nWe shortlisted 35 semiconductor stocks using the holdings of iShares' Semiconductor ETF. Then we merged these stocks with Insider Monkey's proprietary hedge fund holdings database and identified the 10 most popular hedge fund semiconductor stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).\n A close-up of a complex network of integrated circuits used in logic semiconductors. \nTaiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)\nNumber of Hedge Fund Holders: 158\nTaiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) is the world's largest dedicated chip foundry, commanding over 60% of the market. Founded in 1987, TSMC leverages its scale and advanced technology to maintain strong operating margins in the competitive foundry space. The shift toward the fabless business model has further boosted TSMC, as major customers like Apple, AMD, and Nvidia rely on its cutting-edge process technologies to manufacture their semiconductor designs.\nThe company experienced an explosive 2024, with its shares up 109% in the last year. TSM remains integral to the AI revolution, leveraging its cutting-edge 3nm and 5nm technologies to drive innovation for key clients, including Nvidia and Apple. In Q4, High-Performance Computing (HPC), encompassing AI and 5G applications, represented 53% of TSM's revenue, up from 43% the prior year, fueled by rising AI-driven demand. CEO C.C. Wei expressed confidence in managing geopolitical challenges, such as US export controls on AI chips, highlighting the company's commitment to maintaining open communication with current and future administrations.\nDespite geopolitical risks, TSM continues to invest in advanced manufacturing, which contributed 74% of wafer revenue in Q4. With plans to scale 3nm production and prepare for its 2nm technology, the company is positioned to preserve its competitive edge. These advancements are essential for sustaining margins and meeting the demands of AI applications, including Nvidia's GPUs and Apple's custom processors.\nOverall TSM ranks 2nd on our list of the best semiconductor stocks to buy for the AI boom. While we acknowledge the potential of TSM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TSM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.   \nREAD NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.   \nDisclosure: None. This article is originally published at Insider Monkey.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.30.2","shortVersion":"4.30.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2505470491"}