Slices known as GPUs (GPUS) may be the most important devices in developing artificial intelligence at the present time. Over the past two years, investing in semiconductor stocks has been a great idea – as you are almost guaranteed a form of exposure to data centers or data centers.
However, 2025 is not running the best start of chips.
Whether the drama brought by the Chinese company Deepseek, the new US President Donald Trump’s tariff, or the noble investor expectations, many names in the world of chips were not fine this year. From a macro perspective, VANECK Semiconductor ETF 4 % decreased so far in 2025 (as of March 3). When it comes to specific companies, take Nafidia and Advanced small devices,, Which witnessed its 7 % and 17 % decrease, respectively, so far this year.
Although many investors cannot look away from NVIDIA or AMD, another arrow was arrested in the broader sale in the semiconductor scene – and I think it is worth buying a decline at the present time.
Let’s explore why it seems now as a profitable opportunity to buy Taiwan manufacturing semiconductors(Nyse: tsm) Fist hand stock.
When it comes to recognizing the brand in the chips market, investors do not need to look further than NVIDIA and AMD. These two tyrants lead the charge in the GPU revolution. During, Broadcom It plays an integral role in preparing data centers with advanced chips, while Micron technologyThe importance of storage solutions for highly frequently frequented domains is increasing as the burden of AI data has become larger and more complicated.
With the presence of many other names that dominate the headlines and talks, I will not be surprised if you are not aware of the half or TSMC. The thing is that many leaders in the area of the chips – including NVIDIA, AMD and Broodcom – should return to Taiwan half to a large part of their success.
TSMC specializes in Foundry solutions, a fictional term that mainly means that it actually makes chips and integrated systems of semiconductor companies. In other words, without TSMC, the NVIDIA chip structure will be a more tangible product.
Looking at the amount of demand for graphics processing units over the past two years, it should not be a surprise that Taiwan Simi’s revenues and profits are rising. However, I think the company’s growth has just started to launch.
Many “amazing” seven companies, such as Microsoftand Amazonand alphabetAnd Definition platformsThey explore the designated silicone as a strategy for deportation from excessive dependence on NVIDIA chips. It is said that the adult technology giants, as well as the Chatgpt Openai maker, are cooperating with TSMC to help revive their visions to life.
TSM revenue estimates for the current fiscal year data by Ycharts.
Although TSMC has already acquired nearly two-thirds of the Foundry market opportunity, I believe that the appearance of more allocated silicone-in addition to the new structures of NVIDIA and AMD over the next two years-will increase the company’s leadership position and lead to a long stage of revenue and profit acceleration.
Photo source: Getty Images.
Although the strong market in TSMC and strong financial expectations, the stock shares shares are shocked.
TSM PE ratio (forward) data by ycharts.
Currently, the average price forward (P/E) is double to S & P 500 About 21 years old. As the chart above shows, Taiwan Semi is approximately 19 years old. For me, this contrast indicates that investors may see an investment in the S&P 500 as less dangerous than TSMC – and may carry more bullish trend as well.
In my eyes, the main risks that revolve around an investment in TSMC are the following:
The semiconductor industry is periodic.
Geopolitical tensions between China and Taiwan.
Although I can understand those points in the academic sense, I believe that any concerns about these topics are exaggerated. The demand for chips is not expected to slow down soon, as the market is expected to increase ten times over the next decade and reach nearly $ 1 trillion.
Moreover, TSMC operations are not exclusive to Taiwan. In fact, the company has just announced in early March that it will invest an additional 100 billion dollars to expand its manufacturing in the United States, this appears to be a logical decision in view of major technology plans to spend more than $ 300 billion in Amnesty International’s infrastructure in 2025 alone.
I think TSMC shares are now a deal. In the long run investors, investors may want to think about buying these shares on the fist, more than the company’s manufacturing witnesses with the continued revolution of artificial intelligence to move forward.
Before buying shares in the manufacture of semiconductor in Taiwan, consider this:
the Motley Adviser is a lie The analyst’s team has just identified what they think 10 best stocks For investors to buy now … Taiwan manufacturing has not been semi -conductors. The ten shares that made the pieces can produce monster revenues in the coming years.
Look at when Nafidia This list was presented on April 15, 2005 … if you invest $ 1,000 at the time of our recommendation, You will have $ 677631!
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*The stock consultant dates back from March 3, 2025
John Maki, former Chole Foods Market, a affiliate company, a member of the Motley Fool Board of Directors. Randy Zuckerberg, former Director of Market Development and Speak for Facebook and Sister to Meta Platforms, Mark Zuckerberg, member of Motley Fool Board of Directors. Susan Fry, CEO of Alphabet, is a member of the Motley Fool Board of Directors. Adam Spatacco has positions in Alphabet, Amazon, Meta Protects, Microsoft and Nvidia. The Motley Fool has positions in advanced advanced devices, alphabet, Amazon, Meta, Microsoft, NVIDIA, and Taiwan Seiconductor Manufacturing. Motley Fool Broadcom recommends the following options: Long from January 2026 $ 395 calls on Microsoft and Short January 2026 $ 405 calls on Microsoft. Motley Fool has a disclosure policy.
1 Stock of semiconductor artificial intelligence (AI) for purchase by the grip at the present time (hint: it’s not NVIDIA or AMD) was originally published by Motley Fool
