5 Best AI Chip Stocks to Buy for the Long Term

3. Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)

Market Capitalization: $2.29 trillion

Number of Hedge Fund Holders: 234

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) is one of the 10 Best AI Chip Stocks to Buy for the Long Term. The stock jumped 98.28% over the past year and increased 36.54% year-to-date. On June 22, TheFly reported that Susquehanna analyst Mehdi Hosseini increased the price target on Taiwan Semiconductor Manufacturing to $575 from $500 while maintaining a Positive rating on the stock.

The analyst updated its model, including its capex and capacity strategy, noting that it expects the company to exceed both consensus and buy-side expectations. In contrast, the analyst noted that key uncertainties remain, such as how associated silicon requirements could drive potential supply-demand imbalances.

Earlier on June 16, Taiwan Semiconductor Manufacturing announced a 10-year agreement with Amkor Technology, Inc., aimed at accelerating advanced semiconductor packaging capabilities in the U.S. semiconductor supply chain ecosystem.

Under the agreement, a collaboration framework will be established for Taiwan Semiconductor Manufacturing to procure advanced packaging and testing services from Amkor. As they work together to expand capacity, the companies said they look to enable a more efficient, mutually beneficial operating model while strengthening their ability to support customers’ evolving requirements.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) is a dedicated semiconductor foundry, providing advanced process technologies and manufacturing capabilities to enable innovation across a wide range of industries.