2025-07-03 11:30:02
AI Isn’t Just About Nvidia: 2 Rising Stars in the Artificial Intelligence Race
Taiwan Semiconductor Manufacturing Company (TSMC) is highlighted as a key player in the AI hardware sector beyond Nvidia, benefiting from its technological领先地位和与行业巨头的长期关系。由于Nvidia等主要客户的需求增长,以及AMD和亚马逊等公司竞相生产定制芯片,TSMC抓住了这一快速扩张需求的一大部分。尽管地缘政治担忧仍然存在,但TSMC通过在美国、日本和德国建立先进制造设施来分散其制造基地,从而降低了这些风险。
In This Article:
Businessman touching the brain working of Artificial Intelligence (AI) Automation by Suttiphong Chandaeng via Shutterstock
When investors think of artificial intelligence (AI) and the stock market, one name stands out: Nvidia (NVDA).
The chip giant has been the poster child for the AI boom, with its high-performance GPUs powering everything imaginable. However, as Nvidiaâs valuation rises and competition heats up, investors are beginning to look beyond the obvious for high-quality AI investments. Letâs look at some other options.
Is UnitedHealth Stock a Buy, Sell, or Hold for July 2025?
Michael Saylor Says âYouâll Wish Youâd Bought Moreâ Bitcoin as MicroStrategy Doubles Down
Is Microsoft Stock About to Go Nuclear?
Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else.
Taiwan Semiconductor Manufacturing Company (TSM), also known as TSMC, is the worldâs largest and most advanced semiconductor foundry. It makes chips designed by companies such as Nvidia, Apple (AAPL), Advanced Micro Devices (AMD), and Qualcomm (QCOM). Essentially, without TSMC, the AI revolution would lack the necessary hardware.
TSM stock has returned 252% in the past five years. So far this year, the stock is up 18.1%, outperforming the 5.7% gain in the S&P 500 Index ($SPX).
www.barchart.com
TSMC has built an impressive competitive moat by remaining technologically ahead and cultivating long-term relationships with industry titans. Nvidia, one of its largest customers, uses TSMC to manufacture advanced AI chips such as the H100 and GH200, which power AI data centers. With Nvidiaâs sales soaring and other AI-focused companies such as AMD and Amazon (AMZN) racing to produce custom chips, TSMC is capturing a sizable share of this rapidly expanding demand.
In the first quarter, total revenue increased 35% year-over-year to $25.5 billion. Management stated that â7-nanometer and more advanced technologies accounted for 73%â of total wafer revenue. Diluted earnings per share increased by 60.4% in the quarter. Geopolitical concerns have loomed large over TSMC due to its Taiwan-centric manufacturing base. However, the company is actively diversifying its footprint. TSMC is developing advanced manufacturing facilities in Arizona, Japan, and Germany with the help of strategic partnerships and government subsidies. The Arizona plant, in particular, is expected to produce 3-nm chips by 2025, placing it among the most advanced facilities in the U.S. This reduces geopolitical risks and aligns TSMC with U.S. efforts to localize semiconductor supply chains.