Asserting that Taiwan Semiconductor Manufacturing Company Limited (TSM) “is very much a beneficiary” of the AI Revolution, stock researcher Jessica Inskip told Schwab Network today that she is upbeat on the long-term outlook of TSM stock.
However, because Inskip, the Director of Investor Research at StockBrokers.com, says that the stock is hitting a resistance point, she has adopted a conservative options strategy towards the name.
Why Inskip Is Bullish on Taiwan Semiconductor Manufacturing Company Limited (TSM)
With the developed world “in the early revolutionary stages of AI,” TSM “is very much a beneficiary of the AI megatrend, Inskip stated. The stock researcher noted that, like Nvidia (NVDA), TSM is developing the “chips that power AI.”
The demand for such chips is expected to jump beyond $1 trillion by 2030, and Taiwan Semiconductor Manufacturing Company Limited (TSM) is “positioning itself” for that surge, she said.
And by 2027, chips that will boost AI’s computing power by 40 times will be ready for “mass production,” the stock researcher said.
“Constant innovation” will keep the demand for AI chips strong, according to Inskip.
Inskip’s Options Strategy
The stock researcher has sold a 45-day cash-secured put at the money that gives her an obligation to buy the stock at the strike price if it drops below its current level, she explained.
The strike price is “very close” to the shares’ current level. The premium she obtains is her maximum possible gain, but she has limited her risk if the shares fall, Inskip stated.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
This article is originally published at Insider Monkey.
