We just covered the 10 Best Pick and Shovel AI Stocks to Buy for the Long Term.
Taiwan Semiconductor Manufacturing Company (NYSE:TSM) ranks #2 (see 5 Best Pick and Shovel AI Stocks to Buy for the Long Term)
Short interest: 0.5% Taiwan Semiconductor Manufacturing Company (NYSE:TSM) is effectively selling shovels in a gold rush with a near-dominant position in the industry. Its moat is wide because very few companies can match its scale, manufacturing precision at cutting-edge nanometer nodes, and ability to consistently produce high-yield chips for the world’s most advanced AI designs. Global semiconductor sales reached $99.5 billion in March, a 79% year-over-year surge, according to data from the World Semiconductor Trade Statistics organization.
Taiwan Semiconductor Manufacturing Company (NYSE:TSM) has over 60% share of the total foundry market and over 90% of the market for advanced nodes (7nm and below). It makes chips for giants like Nvidia, Apple, Qualcomm, Broadcom and many more. Read what a Broadcom executive recently said about the demand Taiwan Semiconductor Manufacturing Company (NYSE:TSM) is facing here.