The Nvidia supplier is the best way to play the AI theme
Taiwan Semiconductor Manufacturing Co. (TSMC) hit a record high, capping a stellar year with an 82% stock surge driven by its role in AI growth. With key clients like Nvidia, Apple, and AMD, TSMC benefits from booming AI investments and is expected to report a 36% sales jump in Q4, alongside a robust 58.3% gross profit margin. Analysts highlight TSMC as a top AI investment choice because of its broad exposure and reasonable valuations. Upcoming catalysts include Nvidia’s CES 2025 presentation and TSMC’s financial results.
My Take
TSMC’s unique position as a foundational player in AI supply chains makes it an indispensable investment for those looking to ride the AI wave. However, beware of geopolitical challenges (e.g., a China takeover).
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Credit: Bloomberg
This post was enhanced with AI assistance, thoroughly reviewed, edited, and reflects my own thoughts.