If I Could Only Buy 1 Artificial Intelligence AI Chip.jpeg
When investors discuss the future of artificial intelligence trade (AI), you find the conversation in general its way to the usual suspects: Nafidiaand Advanced small devicesAnd cloud lasse is like Microsoftand AmazonAnd alphabet.
Each of these companies is racing to design graphics processing units or dedicated custom speeds at home. But behind this device, there is a company that benefits regardless of the brand of chips: Taiwan manufacturing semiconductors(Nyse: tsm).
Let’s disintegrate why Taiwan Simae is the best stock of Amnesty International chip for the next ten years, and evaluating whether it is now an appropriate time to raise some shares.
As the world’s leading semiconductor mascara, TSMC manufactures chips for almost a major artificial intelligence – from NVIDIA and AMD to Amazon’s silicone initiatives, called Tradium and Indibetia.
Unlike many of its peers in the area of chips that depend on new products courses to stimulate the demand, the Taiwan Simai business model is mainly not attached. Whether the demand is allocated to graphics, acceleration, or specialized silicone silicon units, each method leads to TSMC manufacturing capabilities.
With approximately 70 % of the market share in the global museum field, it is difficult to ignore the dominance of Taiwan Sim. Such the lead provides leaders on the company’s competition to see unparalleled structural demand – a trend that appears to be accelerated as Amnesty International’s infrastructure.
Photo source: Getty Images.
Currently, the development of artificial intelligence still focuses on training and refining large language models (LLMS) and including them in the software applications.
The next wave of artificial intelligence will expand to more diverse and requirements – self -government systems, robots, and quantum computing is still in its cradle. Widely, these work burdens will put greater demands on the silicon than today’s chips.
It does not require additional requirements for additional investments in the chips. Instead, it requires chips designed for new levels of efficiency, performance and energy management. This is where the competitive advantages of TSMC begin.
With each sequence generation of operating technology, the company has a unique opportunity to expand the performance gap between it and competitors such as Samsung or Intel.
Since Taiwan Semi has already has a great imprint in the Foundry scene, the complexes of the next generation design gives the company an opportunity to lock deeper and deeper customer relationships.
Taiwan Semi may trade the price (P/E), which is 24, but the shares refuse to be “expensive” overlooking the unusual company situation in the world of artificial intelligence. For me, the company’s evaluation reflects a strong view of growth, improving profit horizons, and a decrease in risk premium.
TSM PE data (forward) by Ycharts
Unlike many of its semi -conductor peers, which are vulnerable to the counter -winds, TSMC has become an indispensable benefit for many of the world’s largest artificial intelligence developers, and develops into one of the backbone of the continuous infrastructure mutation.
The volume of investment behind the current infrastructure of Amnesty International is to drop the jaw. Easter invests amazing amounts to expand and update data centers, and at the heart of every new building is an unworthy demand for more chips. Moreover, each of these companies explores advanced use cases that will require, at some point, the capabilities of the next generation.
These dynamics are placed in Taiwan almost at the crossroads of immediate growth and long -term expansion, as the infrastructure of artificial intelligence develops rapidly from a continuous growth driver today to a multi -time secular topic.
TSMC manufacturing dominance ensures that its services will continue in a strong demand scene for years to come. For this reason, I believe that Taiwan is half in an experience to expand the evaluation over the next decade, with the continued separation of the infrastructure of the artificial intelligence story.
While there are many great opportunities in the area of chips, TSMC stands alone. Perhaps I see them, perhaps the most unique and permanent arrows of the connections you possess amid a volatile technical scene over the next few years.
Before buying shares in the manufacture of semiconductor in Taiwan, consider this:
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Adam Sepataco has sites in Alphabet, Amazon, Microsoft and Nvidia. Motley Fool has parking lots in advanced, alphabet, Amazon, Intel, Microsoft, Nvidia, and Taiwan Semiconductor. Motley Fool recommends the following options: Long January $ 2026 $ 395 on Microsoft, Short August 2025 $ 24 calls on Intel, and shortening in January 2026 $ 405 calls on Microsoft, and short $ 2025 $ 21 on Intel. Motley Fool has a disclosure policy.
If you can buy only one chip stock for artificial intelligence (AI) over the next ten years, this will be (hint: it’s not NVIDIA) was originally published by Motley Fool
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