Myron Xie, a SemiAnalysis specialist from Taiwan Semiconductor Manufacturing Co. Ltd. says that Taiwan Semiconductor Manufacturing Co. Ltd. “is the only player in town” for AI chips.
TSMC, the world’s leading supplier of artificial intelligence (AI) chips is a customer of Nvidia and hyperscalers who are committed to manufacturing their chips.
According to Xie, the New York listed TSM stock is one of the best investments to make in the AI sector – perhaps more than Nvidia.
TSMC anticipates that AI revenues will continue to grow rapidly.
TSMC is known for its quality and innovative products. The 3nm, 5nm, and other cutting-edge chips are in great demand by AI applications.
The shares of this Taiwanese company have almost tripled in value since 2024. Myron Yie is still bullish about TSM stocks because of “its leadership” in AI technology.
Taiwan Semiconductor finished last year with an astonishing 200% rise in AI revenues.
A slowdown in the AI sector is unlikely to be seen, as the management anticipates that the business will grow at 40% per year over the next 5 years.
TSM’s shares pay out a current dividend yield of 1.15 %, making them incredibly attractive for investors looking to earn income.
Warren Buffett once owned TSM stock
SemiAnalysis’ expert believes that TSMC will even surpass its ambitious AI revenue forecast, as the management of TSMC is conservative.
He said on CNBC’s “Capital Connection” on Friday that the NYSE-listed company could see a stronger recovery in its smartphone business, which would result in a further incremental boost in top-line revenue.
Taiwan Semiconductor announced earlier this week that it expects to generate up to $28,8 billion of revenue in the first quarter 2025, which is a significant 37% growth on an annual basis.
Warren Buffett, the famous investor and businessman once referred to TSMC as one of the most well-managed corporations in the entire world. In 2023, he sold TSM shares due to geopolitical fears.
TSMC has no restrictions on exporting US chips
Recently, the Biden administration announced new rules to restrict AI chip exports to certain countries including China.
Myron Xie, of SemiAnalysis, is still convinced that the revenue impact will be minimal as there are “very few illegal schemes” to circumvent these export controls.
Taiwan Semiconductor reportedly focused on its expansion overseas late last year.
By 2025, TSMC plans to build 10 new factories. One of them is already under construction.
Wall Street also seems to be in agreement with Xie.
TSM is currently rated “Buy” by analysts, and they expect it to rise in value up to an average of $246. This indicates that the stock could increase another 15% over the coming 12 months.
The post This article Top Analyst reveals the best AI stock to invest in by 2025 – and it’s NOT Nvidia could be updated as new information becomes available
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