Taiwan Semiconductor Manufacturing Just Showed the Artificial Intelligence (AI) Build-Out Is Alive and Well With This Jaw-Dropping Announcement
TSMC is at the heart of the data center infrastructure build-out.
Overview
Taiwan Semiconductor Manufacturing (NYSE: TSM) may be one of the most important companies to the health of the AI infrastructure build-out. Its foundries churn out the logic chips designed by nearly every one of the major players in the space, and it just made an announcement that supports the idea that we're still in the early innings of the AI build-out. During its second-quarter earnings call, it announced it would make an additional $100 billion investment in expanding its chipmaking facilities in Arizona. If Taiwan Semiconductor suspected that the AI build-out was nearing completion, it wouldn't be increasing its production capacity.
Given its leading position in a still-growing space, I think Taiwan Semiconductor is one of the lowest-risk, highest-potential-reward options in the market, and it still looks like a phenomenal investment now, even after rising over 30% so far this year.
Image source: Taiwan Semiconductor Manufacturing Company.
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Originally published at www.fool.com.