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In a recent analysis, we examined the standing of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) among a selection of 15 AI Stocks Trending on Financial Media. This exploration highlights the significant role that memory chips play in the unfolding artificial intelligence revolution, which has cast light on memory chip manufacturers previously overshadowed by major semiconductor and software firms.
AI technology relies heavily on data storage solutions, making memory chips essential for storing vast amounts of data used in training models. A notable development in this sector is the upcoming stock market debut of Kioxia, a Japanese memory chip producer, which is projected to have an initial valuation nearing $5 billion. This follows a prior postponement of its IPO plans, which were expected to value the company at double that amount.
Further insights can be gained from articles discussing the 10 Best AI Data Center Stocks and the 10 Buzzing AI Stocks According to Goldman Sachs.
Kioxia is backed by private equity giant Bain Capital, which acquired the company from Toshiba for $18 billion in 2018. As one of the leading manufacturers of NAND flash memory globally, the quality of Kioxia’s NAND components is critical for the efficiency and performance of AI applications. Bain Capital has made two attempts to take Kioxia public, first in 2018 and again earlier this year, reflecting the high stakes involved in the memory chip market.
To identify promising AI stocks, our methodology includes analyzing financial news sources, stock assessments, and press announcements. Notably, these stocks have garnered attention from hedge funds, which can indicate potential for performance. Our research demonstrates that replicating the stock selections of top-performing hedge funds can often yield market-beating results. Since May 2014, our quarterly investment strategy has achieved a return of 275%, significantly outperforming its benchmark.
Assessing TSM Stock as a Long-Term Investment
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) specializes in the production and sale of integrated circuits and semiconductors. Recently, Bank of America analyst Brad Lin commented on the AI sector, highlighting the strong earnings from NVIDIA, which reveal a sustained demand for AI technologies with rapid adoption rates. Lin noted that NVIDIA’s consistent development schedule for data center GPUs is advantageous for TSMC and reinforces its leadership position in the market.
Currently, TSM ranks 6th among the AI stocks trending in financial media. While the company has compelling investment potential, some analysts believe that other AI stocks might offer greater growth prospects in shorter timeframes. For investors seeking alternatives, a report discusses options for the cheapest AI stock that trades under five times its earnings and may present a more attractive investment opportunity.
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Disclosure: None. This content is derived from a publication by Insider Monkey.
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finance.yahoo.com