When it comes to the world of artificial intelligence (AI) and the semiconductors powering it, the first names that often come to mind are industry giants like Nvidia and Broadcom. However, there's an under-the-radar semiconductor stock that may just be a better investment for your $150 right now: Taiwan Semiconductor Manufacturing Company (TSM).
A Semiconductor Superstar in the Making
What this really means is that TSM, the world's largest contract chipmaker, is quietly emerging as a semiconductor superstar in the AI chip space. While Nvidia dominates the GPU market and Broadcom is a key supplier of networking chips, TSM has been steadily expanding its market share thanks to its advanced chip manufacturing technology.
The bigger picture here is that TSM is poised to benefit immensely from the explosive growth of AI. As MSN reports, TSM's long-term pricing plans demonstrate a clear runway of growth and a sustained competitive advantage in the AI semiconductor market.
An Undervalued Gem
Compared to industry darlings like Nvidia and Broadcom, TSM's stock is currently trading at a much more attractive valuation. The Motley Fool notes that TSM's shares are priced at a significant discount to these rivals, making it a potentially undervalued gem for investors looking to gain exposure to the AI chip market.
So, while the likes of Nvidia and Broadcom may grab the headlines, savvy investors would be wise to take a closer look at Taiwan Semiconductor Manufacturing Company as a potential AI chip stock to buy now with just $150.