TSMC seen as better long-term AI chip investment

Artificial intelligence (AI) has become a major focus for investors since late 2022, when OpenAI launched ChatGPT. Many companies, including Nvidia, have seen massive growth as a result. Nvidia's stock has surged nearly 680% since ChatGPT’s release, making it one of the most valuable companies globally. Despite Nvidia’s impressive performance, some investors believe there are better options. One standout is Taiwan Semiconductor Manufacturing Company (TSMC). TSMC is a leader in chip manufacturing, holding 67% of the global third-party foundry market as of the end of 2024. The company works with major tech firms like Nvidia, AMD, and Apple. In recent years, TSMC has shown strong growth in revenue and profit margins. The company is reinvesting its profits into expanding its capabilities, including a $100 billion investment in facilities and research in the U.S. This move aims to strengthen relations with key customers involved in AI. However, TSMC’s stock has seen a decline in 2025, down about 12%. Despite this, analysts believe that TSMC remains a solid long-term investment. The company continues to play a crucial role in the growing demand for AI chips and data centers. With its current valuation and ongoing expansion, potential investors may find TSMC shares to be a bargain.