TSMC’s AI Chip Dominance Strengthens Its Credit Outlook

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the Best AI and Technology Stocks to Buy Now. On June 23, S&P Global stated that the company has significantly bolstered its leadership in the broader global semiconductor foundry sector over the past few years, amidst strong revenue growth and robust margins. This was backed by its dominance in semiconductor foundry services for advanced high-performance computing chips.

Taiwan Semiconductor Manufacturing Company (TSM) Bolsters Leadership in Global Semiconductor Foundry Sector, Adds S&P Global

Furthermore, S&P Global believes that rapid improvement in EBITDA and cash flow generation can help Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) sustain growth in its net cash position. This is despite elevated capex and cash dividends over the upcoming 1-2 years. The firm revised its outlook on the ‘AA-‘ long-term issuer credit rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). This reflects its healthy EBITDA and free operating cash flow growth, which is aided by higher technology and scale barriers for its peers.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a Taiwanese multinational semiconductor contract manufacturing and design company that manufactures, packages, and tests integrated circuits for various industries.

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: 10 Best FMCG Stocks to Invest In According to Analysts and 11 Best Long-Term Tech Stocks to Buy According to Analysts.

Disclosure: None. Follow Insider Monkey on Google News.

1281292 - 11759070 - 1