2 No-Brainer Chip Companies to Ride the Artificial Intelligence (AI) Investing Wave
When you hear about artificial intelligence (AI) investing, you may think of the software powered by the technology or the hardware that trains the model. However, investors should also think of the chips that go into these devices to power the AI models.The chip market is a huge investment opportunity, as these companies make chips for all competitors in the AI arms race, making them a neutral way to invest in the trend. Two of my favorite companies in this space are Taiwan Semiconductor (NYSE: TSM) and ASML (NASDAQ: ASML). Without these two, none of the technologies seen today would be possible, and both companies are vital suppliers in the AI arms race.Taiwan Semiconductor is a contract chip manufacturer, which means that companies like Apple and Nvidia design the chip, and then TSMC fabricates it. This is a great position to be in, as it allows TSMC to focus on being a top-notch manufacturer and not have to worry about marketing its products. Additionally, TSMC has the unique position of being able to sell to both sides of the competition, as TSMC manufactures chips for AMD as well as other custom AI accelerators that are competing against Nvidia for market share.Continue reading
When you hear about artificial intelligence (AI) investing, you may think of the software powered by the technology or the hardware that trains the model. However, investors should also think of the chips that go into these devices to power the AI models.
The chip market is a huge investment opportunity, as these companies make chips for all competitors in the AI arms race, making them a neutral way to invest in the trend. Two of my favorite companies in this space are Taiwan Semiconductor (NYSE: TSM) and ASML (NASDAQ: ASML). Without these two, none of the technologies seen today would be possible, and both companies are vital suppliers in the AI arms race.
Taiwan Semiconductor is a contract chip manufacturer, which means that companies like Apple and Nvidia design the chip, and then TSMC fabricates it. This is a great position to be in, as it allows TSMC to focus on being a top-notch manufacturer and not have to worry about marketing its products. Additionally, TSMC has the unique position of being able to sell to both sides of the competition, as TSMC manufactures chips for AMD as well as other custom AI accelerators that are competing against Nvidia for market share.
