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Taiwan Semiconductor Manufacturing Company Limited (TSM): It’s Good Because Of NVIDIA, Says Jim Cramer

We recently published 10 Stocks Jim Cramer Discussed As He Shared Key Insights From Morgan Stanley’s CEO. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the stocks Jim Cramer recently discussed.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest semiconductor contract manufacturer. Its shares, traded as depository receipts, have gained 21% year-to-date. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has prospered on the stock market due to the firm’s market share, which means that it will be the end-beneficiary of AI-chip demand. Cramer’s previous comments about the firm have also called it a proxy for NVIDIA’s shares. Here are his latest thoughts:

[TSM]”Yeah look, Taiwan Semi reports overnight. It’s an unbelievably good number but understand it’s really unbelievably good number because of high performance computing. In other words, it’s a good number because of NVIDIA.

“[Whether he was thrown off by a warning about Q3 margin]. Not at all. Not at all. I think that this is a company that still uses classic underperform, overdeliver. I meant underpromise, overdeliver.”

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

Previously, Cramer explained how Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) had gained the favor of the Trump administration:

“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.”

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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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