Chips, known as Graphic Processing Units (GPU), are currently the most important equipment in the development of generative AI. In the past few years, investing in semiconductor shares was usually a great idea
However, 2025 did not pass the best start for chip resources.
The drama brought by the Chinese beginning DepthThe new names of the US President Donald Trump’s new tariffs or high investor expectations, many names in the world of chip have not gone very well this year. From a macro perspective, Vaneck Semiconductor ETF In 2025, it decreased by 4% to this day (March 3). When it comes to special companies, take it Nvidia and Advanced micro devicesThis year, this year has seen its shares in this year by 7% and 17%.
When many investors are not able to look away from NVIDIA or AMD, there is another share in the semiconductor landscaping – and I think it’s right now.
Now why it looks like a lucrative opportunity to buy Taiwanese semiconductor production(NYSE: TSM) Fock hand over the fist.
As for the recognition of the brand in the chip market, investors do not need to appear more than NVIDIA and AMD. These two jugglers are charged with the GPU revolution. Meanwhile Broadcom Playing a gentle role in data centers with advanced chip containers Micron technologyHigh bandwidth memory storage solutions are increasingly important for the larger and more complicating of AI data affairs.
I would not be surprised if you are not aware of Taiwan Semi or TSMC, which prevailing headlines and speaking points. The case is that many leaders in the chip space – including NVIDIA, AMD and Broadcom, Taiwan Semi should provide a large number of loans for many successes.
TSMC specializes in the manufacturer of chips and integrated systems, mainly for flawed and semiconductive companies. In other words, without TSMC, NVIDIA’s chip architecture would be an idea than financial product.
Given how much it requires to GPU in the past few years, the increase in Taiwanese Semin should not be growing as a surprising surprise. With that, I think the company’s growth begins to stone only gear.
As many “magnificent seven” companies Microsoft, Amazon, Alphabetand Meta platformsThe NVIDIA discovers a special silico as a strategy to relocate in Chipware. This is a great technological giants, as well as chatrpt maker OpenIt is reported that cooperation with TSMC to help you carry out meetings with TSMC.
Despite the fact that the TSMC’s bonfire market acquires two-thirds of two-thirds of two-thirds, more specific silicone arrival – In addition to the new architectures of NVIDIA and AMD, the company will further strengthen the company’s position and extends income and profit acceleration.
Picture source: Getty Images.
Despite the powerful market position of TSMC and a healthy financial outlook, the shares of the chip fund are shocked.
Currently, for average forward price-save (p / e) S & P 500 Is about 21. This can see an investment because Taiwan Semi’s Forward P / E’s Taiwan Si-E’s TSMC is less risky than the TSMC, and it is more likely to be more risky.
In my eyes, the two main risks that rotate around an investment in TSMC are:
The semiconductor industry is cyclical.
Geopolitical tension between China and Taiwan.
If I could understand these points in the academic sense I think of any fears of fear around these issues. As the market will increase in tenfold and reached a measure of about $ 1 trillion over the next ten years, the chip request is not expected to slow down any time.
On top of that, TSMC’s operations are not exclusive to Taiwan. In fact, in early March, in early March, it announced that it would be invested in an additional $ 100 billion to expand production footprints in the United States, which plans to spend more than $ 300 billion in the AI infrastructure in 2025.
I think the TSMC Foundation is currently a bargain. Long-term investors, this stock can think of buying the hand on a punch, because the company’s production operation continues to act in full steam.
Before buying stock in the production of Taiwanese semi-conducting, review this:
This Attley Stock letter Analyst group, only determined they believed 10 best stocks Now the investors are now for the purchase of … and Taiwanese semiconductor production was none of them. 10 shares that create the cut can return the monster in the coming years.
Think about when Nvidia He did this list on April 15, 2005 … If you invest $ 1,000 in the period, You will receive $ 677,631! *
Now it should be notedStock consultantTotal average returns822% – a market crusher in comparison166%For S & P 500. Don’t miss on the top 10 list available when you joinStock consultant.
* The stock consultant returns as of March 3, 2025
John McKey, the All Foods market, which is a subsidiary company, is a member of the Board of Directors of Motley Soop. Market development for Facebook and sisters and Skuckerberg, meta platforms former market development and Skuckerberg, Mark Zuckerberg, Motley Soum’s board member. An executive President Suzanne Frey in the alphabet is a member of the Board of Directors. Adam Spatacco There are positions in Alphabet, Amazon, Meta Platforms, Microsoft and Nvidia. Motley has Foox positions and advise advanced micro devices, alphabet, Amazon, Meta platforms, Microsoft, NVidia and Taiwanese semiconductor production. Motley Foox recommends Broadcom and recommends the following options Motley Fool A Disclosure Policy.
