1 Must-Own Artificial Intelligence Stock for the Next Decade

Core Viewpoint - Taiwan Semiconductor Manufacturing Company (TSMC) is positioned to benefit from the ongoing developments in the AI chip market, regardless of which chip designers gain or lose market share [1][4]. Industry Overview - The AI chip market is experiencing competition from various companies, including Alphabet, Nvidia, AMD, and Broadcom, which are all fabless chip designers that outsource manufacturing [2][3]. - TSMC is a critical player in the semiconductor supply chain, producing the majority of high-powered computing chips essential for AI applications [3]. Company Performance - TSMC is launching a new 2 nanometer (nm) process node, which offers significant advantages, including 25% to 30% less power consumption compared to the previous 3nm generation [6]. - In Q3, TSMC reported a 41% year-over-year revenue increase in U.S. dollars, with projections indicating continued growth due to rising global data center capital expenditures [7][8]. Market Position - TSMC does not rely solely on Nvidia's success to thrive; the company will benefit as AI hyperscalers increase their spending on data centers [8]. - The stock is considered reasonably priced at 28 times forward earnings, making it an attractive investment compared to other leading chip designers [10][12].