30 Most Important AI Stocks According to BlackRock

7. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Number of Hedge Fund Holders: 156  

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) makes and sells integrated circuits and semiconductors. In a recent media interview, one of the key suppliers of the company has pointed out that the boom in the AI industry has just begun, and TSM, as well as partners in the chip world, would likely witness a spur in demand for AI chips in the coming months, even as fears of a slowdown in growth spark a selloff in chip stocks. Hsu Ming-Chi recently revealed that his firm Scientech expected sequential quarterly sales growth in the back half of the year. Scientech provides chip-on-wafer-on-substrate packaging, an important element in chip manufacture which has been in short supply amid the AI boom.

Amid the high demand for chips, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is expected to achieve key production yield targets at a new Arizona facility on par with established plants in Taiwan. This would translate to the commencement of mass production of TSM chips in Arizona by 2025. According to reports, the yield rate in trial production at the first advanced US chip plant in Arizona is similar to comparable facilities in the southern Taiwanese city of Tainan.