35 Chip Stocks Powering AI Boom

2. 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. The company recently posted sales numbers for August, indicating strong demand for AI products. The firm, which manufactures processors for NVIDIA, Apple, AMD, and other tech giants heavily spending on AI hardware for their AI data center build, said revenue for August came in at around $7.8 billion, up 33% from August 2023, but was down 2.4% from July. The revenue for the eight months ended in July jumped over 30% to almost $55 billion.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the favorite chip stocks on Wall Street. JPMorgan recently raised the price target on the stock to NT$1,200 from NT$1,080 and kept an Overweight rating, highlighting that TSM was now firmly on course to improve margins in the next few years. In an investor note, the advisory detailed that together with continued strong demand for artificial intelligence accelerators and leading market position, strong earnings growth was expected from TSM in the next few years.