Posted 3/14/2024, 10:39:00 AM
TSMC: A Cheaper Way to Invest in Booming AI Chip Market
- Nvidia stock has surged over 275% in the past year but some view it as overvalued and in a bubble
- TSMC manufactures chips for Nvidia and other AI chip makers, so it benefits no matter who wins the AI chip race
- TSMC is investing heavily to expand production to meet demand for AI chips
- TSMC trades at a much lower valuation than Nvidia at 11x sales vs 38x
- TSMC could see its market cap rise 18% by 2026 based on revenue growth forecasts, making it a cheaper way to invest in AI