Taiwan Semiconductor Manufacturing Co (TSM) Faces US Chip Lag: Analysts Predict Taiwan’s Edge in Advanced Semiconductors

We recently published a list of 15 AI News Updates Investors Should Not Miss. In this article, we are going to take a look at where Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stands against other AI news updates investors should not miss.

A latest report into the adoption of AI in the United Kingdom has revealed that even though a lot of companies are using AI, only a few have integrated the new technology into their manufacturing processes. The study, called The Future Factories was carried out earlier this year in collaboration with design software giant Autodesk. The report warns that the lack of confidence in digital technologies and AI means companies in the UK are at risk of missing out on innovation and productivity gains. It also proposes how government initiatives and regulation can support the adoption of new technologies.

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The report further highlights that manufacturers were mostly using AI to manage their energy usage and reduce waste. It added that some of the manufacturing sectors in which AI was being used were predictive maintenance and supply chain optimization. Per a survey cited in the study, the biggest benefits manufacturers cited were increased efficiency, improved productivity, and automation of routine tasks. The research highlights that the benefits show the importance of lowering the barrier to entry for these technologies and the untapped potential in this field for small manufacturers.

READ ALSO: 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.

For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Taiwan Semiconductor Manufacturing Co (TSM) Faces US Chip Lag: Analysts Predict Taiwan's Edge in Advanced Semiconductors

A close-up of a complex network of integrated circuits used in logic semiconductors.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Number of Hedge Fund Holders: 158  

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) makes and sells integrated circuits and semiconductors. Jeff Koch, an analyst at the semiconductor research and consulting firm SemiAnalysis, recently told news platform Business Insider that chips made in TSM factories in the US are expected to be one to two levels behind the company’s more advanced Taiwan-made chips. Similarly, Stephen Ezell, the vice president for global innovation policy at the Information Technology and Innovation Foundation, also recently told the publication that by the time the TSM Phoenix factory starts making 2nm chips, he would expect the company to be producing even more advanced chips in Taiwan.

Overall, TSM ranks 6th on our list of AI news updates investors should not miss. While we acknowledge the potential of TSM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.