Taiwan Semiconductor Manufacturing Company Limited (TSM) Has The Right Approach In Dealing With President Trump, Says Jim Cramer

We recently published Jim Cramer’s Fresh 14 Stocks & Thoughts About Market Performance. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the stocks Jim Cramer recently discussed.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the most important companies in the world. The firm’s importance is due to the fact that it is responsible for producing nearly all of the world’s high-end chips. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is also investing more than $100 billion in the US as part of its bid to bring some of its advanced chip manufacturing capacity to America. These facilities are being built in Arizona and have already started shipping products to big technology firms. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) rose to prominence by being Apple’s primary chip supplier, and it has also established itself in NVIDIA’s AI chip supply chain. Cramer discussed the firm’s strategy of meeting the Trump administration’s bid to bring back manufacturing to American shores:

“Look, I’d like them to do Taiwan Semi, I mean Taiwan Semi and NVIDIA, they’re like the shovel ready and they go there, they pick, they watch tomorrow to see what state is the best and then they like go buy some shovels from Caterpillar and get to work. Yes! Yes! I mean I know it’s not optics if it’s Apple, but yes, they need to. And I don’t care which part. But they need to. And I think that maybe they want to do what they think is great for shareholders, and this is a waste of money for shareholders but we have an aggressive administration. And Taiwan Semi went and put real money and I think that Apple is putting real money and somehow it’s not visible.”

Taiwan Semiconductor Manufacturing Company Limited (TSM) Has The Right Approach In Dealing With President Trump, Says Jim Cramer

A close-up of a complex network of integrated circuits used in logic semiconductors.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s relationship with NVIDIA led Cramer to comment in June that the stock had acted as a proxy for the AI GPU company’s stock. Here’s what he had said:

“Taiwan Semi was the proxy, as that went up you could buy NVIDIA.”

While we acknowledge the risk and potential of TSM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.