Prediction: This Magnificent Artificial Intelligence (AI) Chip Stock Will Be Worth $2 Trillion in 5 Years
Semiconductor stocks have been in impressive form on the market over the past three years, as the demand for chips used for training and deploying artificial intelligence (AI) models in data centers has shot up remarkably during this period.Not surprisingly, the PHLX Semiconductor Sector index's gains of 44% in the past three years have been higher than the 29% jump clocked by the tech-laden Nasdaq-100 Technology Sector index over the same period. Taiwan Semiconductor Manufacturing (NYSE: TSM), or TSMC, has been one of the big beneficiaries of the spurt in semiconductor spending, with its shares rising 69% in the past three years (as of this writing).TSMC's solid rally has brought its market cap to $980 billion. The good part is that this semiconductor bellwether seems capable of delivering more upside in the long run as well, and it may even hit $2 trillion in market cap.Continue reading
Semiconductor stocks have been in impressive form on the market over the past three years, as the demand for chips used for training and deploying artificial intelligence (AI) models in data centers has shot up remarkably during this period.
Not surprisingly, the PHLX Semiconductor Sector index's gains of 44% in the past three years have been higher than the 29% jump clocked by the tech-laden Nasdaq-100 Technology Sector index over the same period. Taiwan Semiconductor Manufacturing (NYSE: TSM), or TSMC, has been one of the big beneficiaries of the spurt in semiconductor spending, with its shares rising 69% in the past three years (as of this writing).
TSMC's solid rally has brought its market cap to $980 billion. The good part is that this semiconductor bellwether seems capable of delivering more upside in the long run as well, and it may even hit $2 trillion in market cap.
