What Is 1 of the Best AI Stocks to Hold for the Next 10 Years?
Key Points
Taiwan Semiconductor works with nearly all the big chipmakers, including Nvidia.
It makes chips for many applications besides AI.
- 10 stocks we like better than Taiwan Semiconductor Manufacturing ›
Investors continue to debate whether there's a stock market bubble right now, or even more than one.
The idea of there being an artificial intelligence (AI) bubble stems from the massive amounts of money going into development, while the results have yet to be seen. There are some clear winners from all the investment in AI infrastructure, but can it continue?
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Taiwan Semiconductor.
There's some risk in investing in some of the hottest AI stocks right now, especially because a lot of them trade at high valuations.
If you're looking for a high-growth AI stock that looks safer than some of the rest, Taiwan Semiconductor (NYSE: TSM) is a top choice.
Chips for all
What makes TSMC so compelling is that it has a diverse client list and a diverse product line. It's the company behind nearly all the big chipmakers you know, manufacturing the products that make AI work. That reduces the risk of relying on any one of the chipmakers to outdo the others.
For example, although Nvidia has been the leader in AI chips, Alphabet is in talks with Meta Platforms to provide it with its chips, according to insiders. If Nvidia ends up not being as safe as investors think it is today, TSMC, which makes its chips, still has a long list of other clients that use its services -- like Alphabet.
It also makes chips for all kinds of other applications, like smartphones and autonomous vehicles. If the AI bubble does burst, TSMC will still have a healthy business. That makes it a smart, low-risk, long-term AI investment.
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Jennifer Saibil has positions in Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
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