We recently compiled a list of the 10 AI News and Ratings You Should Take a Look At. In this article, we are going to take a look at where Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stands against the other AI stocks.
AI Accessibility and Global Growth
In a CNBC interview, Clement Delangue, CEO of Hugging Face, discussed some important developments in the AI industry and focused on OpenAI, DeepSeek, and the role of open-source innovation. He noted the increasing global attention on AI and the discussions surrounding major industry shifts but emphasized that his priority remains on actual AI development rather than business transactions. He welcomed efforts to make OpenAI more open-source-oriented and stated that greater contributions to open science could have a significant global impact.
Delangue talked about the rapid rise of DeepSeek, whose open-source model has gained widespread adoption, with over a thousand variants developed and millions of downloads on Hugging Face. He pointed out that DeepSeek’s model has already surpassed Llama and Mistral in popularity and is on track to become the most widely used model on the platform. Unlike proprietary AI services that cater to API users, DeepSeek primarily attracts AI builders who run and customize models independently. He suggested this segment could eventually outgrow the user base of API-driven AI platforms.
Delangue also affirmed that DeepSeek’s reported $6 million training cost and lower inference expenses appear accurate. He praised its detailed research paper and the transparency enabled by open-source releases, which allow others to replicate its results. Hugging Face is working on its own replication effort, OpenR1, to provide further transparency on training data and methodologies, making it accessible to developers with limited budgets.
Moreover, Delangue acknowledged DeepSeek’s ability to train models using less advanced, legally compliant chips but left open the possibility that it had access to more sophisticated hardware. He noted, however, that AI advancements in training efficiency could reduce reliance on high-end chips, promoting broader accessibility in the field.
Finally, Delangue observed that DeepSeek’s success has inspired greater ambition in many countries, including Europe, where governments are increasing AI investments. He sees a growing consensus on the benefits of open-source AI. He also noted that China’s AI progress, while surprising to some, was predictable due to its increasing contributions to open-source AI and research. He suggested that other countries, including India, could follow a similar approach to accelerate their AI capabilities and compete at the highest levels.
For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 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).
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) produces and sells integrated circuits, offers wafer fabrication, packaging, and testing services, and supports various industries, including high-performance computing and automotive.
Reuters reported on February 10 that OpenAI is advancing its plan to develop an in-house AI chip and is set to send its first design to TSMC for fabrication in the coming months. Targeting mass production in 2026, the chip will be built using TSMC’s advanced 3-nanometer process, incorporating high-bandwidth memory and networking features similar to Nvidia’s chips. The project is led by Richard Ho and developed with Broadcom and it aims to reduce OpenAI’s reliance on Nvidia. While the initial chip will primarily focus on running AI models, future iterations may expand its capabilities. Success in this effort could provide OpenAI with an alternative to Nvidia and greater control over its AI hardware.
Overall TSM ranks 1st on our list of the AI stocks investors should take a look at. While we acknowledge the potential of TSM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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.
