We recently compiled a list of 35 trending AI stocks with the latest analyst ratings and news. In this article, we’ll take a look at how Taiwan Semiconductor Manufacturing Co., Ltd. (NYSE:TSM) stands compared to other trending AI stocks.
As earnings season approaches, investors are paying close attention to how S&P 500 companies’ artificial intelligence (AI) investments are performing. Analysts expect profit growth to slow, with S&P 500 earnings expected to grow 5.3% year over year, slowing from 13.2% growth in the second quarter, Reuters reported. There is. The technology and communications services sector is expected to show the highest year-over-year growth, with technology revenue expected to increase by 15.4% and communications services by 12.3%. AI companies have dominated the performance since last year, driving the market’s significant rise. The S&P 500 index is currently at a new all-time high, up about 21% year-to-date, driven primarily by strong performance in the tech and communications sectors.
To learn more about these trends, visit Goldman Sachs’ 10 Unsexy AI Stocks and Goldman Sachs’ 10 Hottest AI Stocks.
Howard Chan, CEO of Kurv Investment Management, notes that analysts are keen to assess how major companies are monetizing their AI initiatives, and those that succeed in this regard are particularly rewarded. I did. For example, Meta experienced a sharp rise in its stock price after forecasting strong revenue growth, suggesting that its digital ad revenue is effectively funding its AI investments. Conversely, spending on AI technology by giants like Google raises questions about its integration with existing business models. The S&P 500 trades at 22.3 times expected 12-month earnings, above its long-term average of 15.7 times, and many investors expect this quarter’s earnings to justify higher stock valuations. Solita Marcelli of UBS Global Wealth Management expressed optimism that upcoming third-quarter results could bring further gains, especially as the semiconductor sector remains a focus for AI investments. Ta.
To learn more about these developments, visit BlackRock’s 30 Most Important AI Stocks and Beyond the Tech Giants: 35 Non-Technology AI Opportunities.
our methodology
In this article, we selected AI stocks by examining news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
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 ).
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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. The company recently announced plans to build two more manufacturing plants (fabs) in Kaohsiung, Taiwan, bringing the total number of facilities in the region to five, according to a report from Data Center Dynamics. These fabs, labeled P4 and P5, are currently in the planning stage and environmental assessments are expected to begin soon. The city’s mayor initially disclosed these developments. This announcement follows TSMC’s previous plan to build a third 2nm fab at Nanzih Technology Industrial Park, a 238-hectare site in Kaohsiung City. Construction of P1 has already begun, and mass production is scheduled to begin next year. P2 and P3 are underway, but construction is facing delays due to extensive soil reclamation and cleanup work required after land that previously housed a state-owned refinery was repurposed for the new plant. .
Overall, TSM ranks #7 on our list of trending AI stocks. While we appreciate TSM’s potential as an investment, we believe some AI stocks have a better chance of delivering higher returns over shorter time periods. 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.
