TSMC Poised for More Upside as AI Chip Boom Fuels Growth
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Taiwan Semiconductor Manufacturing (TSMC) is a cheaply valued AI stock that is set to deliver strong growth. Its revenue has accelerated each month in Q1 2024.
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TSMC is benefiting from booming demand for AI chips from companies like Nvidia, AMD, Intel, Qualcomm, and Broadcom. It is rapidly expanding production capacity.
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The global AI chip market is forecast to grow 38% annually through 2032. As the world's largest semiconductor foundry, TSMC is well-positioned to capitalize.
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At 29x trailing earnings, TSMC trades at a discount to the Nasdaq 100. It offers a cheaper way to invest in the AI chip boom compared to a stock like Nvidia.
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With 40% gains year-to-date, TSMC seems poised for more upside. Its Q1 earnings on April 18 could serve as a bullish catalyst.