Chipmakers Poised to Benefit as AI Fuels Surge in Demand for Advanced Semiconductors
• Taiwan Semiconductor Manufacturing (TSM) is poised to benefit from demand for advanced semiconductors used in AI, with its leading position in complex chip manufacturing. Its $709B market cap could top $1T soon.
• Broadcom (AVGO) is diversified across chips, software, and cybersecurity. It expects AI to drive 35% of its semiconductor revenue, quadrupling to over $10B annually.
• Nvidia GPUs are in high demand for AI computing. Its chips help power leading AI systems.
• Apple, AMD, and others leading in AI rely on TSM's advanced manufacturing capabilities to produce their chips.
• Broadcom has competitive advantages including 40%+ operating margins. Its $573B valuation could reach $1T through acquisitions and AI growth.