We recently compiled a list of 10 AI news stories you can’t miss. In this article, we’ll take a look at how Taiwan Semiconductor Manufacturing Co., Ltd. (NYSE:TSM) stands compared to other AI stocks you shouldn’t miss. .
AI offers significant benefits to investors, primarily through increased efficiency, automation, and the potential for higher returns in certain sectors. It leads to increased profitability and efficiency. For example, AI-powered automation improves the efficiency of trading, portfolio management, and operations, helping investors achieve higher returns. According to a report from PwC, financial institutions that implement AI can reduce operational costs by 22% in the short term, directly increasing profitability. Hedge funds, for example, have become more efficient, particularly in areas such as algorithmic trading and risk management. According to a McKinsey report, AI-driven trading algorithms can outperform traditional investment strategies by identifying patterns and trends that are difficult for human analysts to spot. This benefit can increase your revenue by 2-3% per year, which can be a significant benefit over time.
To learn more about these trends, visit 33 Most Important AI Companies to Watch and 20 Industrial Stocks Already Riding the AI Wave.
AI tools also provide real-time data analysis and insights, giving investors a competitive edge in making informed decisions. According to a Deloitte study, 63% of financial executives believe that AI can dramatically improve investment decisions by providing better market predictions and risk assessments. AI algorithms can quickly analyze vast amounts of data, allowing investors to more accurately capitalize on short-term market movements. Similarly, the explosion in generative AI and machine learning is causing stocks related to AI technology to soar. Several AI-focused exchange-traded funds (ETFs) are outperforming the overall market and offering growth opportunities for investors. For example, the Global X Robotics and Artificial Intelligence ETF returned nearly 30% over the past year, significantly outperforming traditional tech funds.
Tom Kehoe, a top researcher at the UK investment firm Alternative Investment Management Association, emphasized that AI is poised to revolutionize investment management by increasing the efficiency and accuracy of decision-making. Similarly, Larry Fink, CEO of investment giant BlackRock, said AI will be a transformative force in asset management, allowing companies to personalize their portfolios and scale their operations more efficiently. As a result, we believe we can create immediate value for investors. Fink was quoted in the Financial Times as saying that the collapse in productivity has become a central problem in the global economy. Fink said that because AI could be the technology that lowered inflation, it had great potential to increase productivity and change profit margins across sectors.
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To learn more about these developments, visit Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
our methodology
In this article, we examined news articles, stock analysis, and press releases to select the latest and most important AI news. These stocks are also popular among hedge funds. Stocks are ordered by the number of hedge funds that own the stock as of Q2 2024.
Why are we interested in stocks that hedge funds invest in? The reason is simple. Our research shows that by mimicking the top stock picks of the best hedge funds, you can outperform the market. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, outperforming the benchmark by 150 percentage points (Learn more ).
Close-up of a complex network of integrated circuits used in logic semiconductors.
Taiwan Semiconductor Manufacturing Co., Ltd. (NYSE:TSM)
Number of hedge fund holders: 156
Taiwan Semiconductor Manufacturing Co., Ltd. (NYSE:TSM) manufactures and sells integrated circuits and semiconductors. According to the latest reports, the company is considering a plan to partner with consumer electronics giant Samsung to build a megachip factory in the United Arab Emirates. According to the Wall Street Journal, these factories will help meet the surge in demand for artificial intelligence computing. The company’s senior executives have already visited locations in Middle Eastern countries for this purpose. Completing such a project would cost more than $100 billion, and TSM has already established such facilities in the United States, Japan, and Germany. In recent years, the UAE has diversified away from its petrochemical economy and opened up to investment in areas such as AI.
Overall, TSM ranks #6 on our list of AI stocks you shouldn’t miss. While we acknowledge TSM’s potential as an investment, we believe that some AI stocks are more likely to deliver higher returns and do so in a shorter time frame. If you’re looking for AI stocks with more promise than TSM, but trading at less than 5x earnings, check out our report on the cheapest AI stocks.
Read next: $30 trillion opportunity: 15 humanoid robot stocks to buy, according to Morgan Stanley and Jim Cramer, says NVIDIA has ‘become a wasteland.’
Disclosure: None. This article was originally published on Insider Monkey.
