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Investing in a broad-based index fund like the Vanguard S&P 500 ETF offers exposure to major tech companies, particularly those benefiting from the AI boom. However, owning only this ETF means missing out on Taiwan Semiconductor Manufacturing Company (TSMC), a key player in AI semiconductor production. TSMC is not part of the S&P 500 but is crucial for companies like Nvidia and Alphabet that rely on its advanced chip manufacturing capabilities.
TSMC dominates the chip manufacturing market, holding over 60% of global spending and producing cutting-edge AI chips for major tech firms. With a significant revenue increase and plans for expansion, TSMC is well-positioned to meet the rising demand for AI technology. Investors should consider adding TSMC to their portfolios to capitalize on its growth potential, especially as it continues to outperform many other tech stocks.
• TSMC is the largest chip foundry, crucial for AI chip production.
• TSMC's revenue and earnings have surged due to AI demand.
AI refers to the simulation of human intelligence in machines, which TSMC supports through advanced chip manufacturing.
Chip manufacturing involves creating semiconductor chips, essential for powering AI technologies and applications.
AI accelerator chips are specialized processors designed to enhance AI computations, produced by TSMC for companies like Meta and Google.
TSMC is the leading chip manufacturer, producing advanced AI chips for major tech companies.
Nvidia designs AI chips and relies on TSMC for their manufacturing, highlighting TSMC's critical role in AI development.
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