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Artificial intelligence (AI) has made impressive progress to date, boosting growth for both pure-play companies and those simply associated with the technology. Taiwan Semiconductor Manufacturing (TSM) is not a direct AI company like Nvidia (NVDA) or Advanced Micro Devices (AMD), but it plays an important role in AI advancements. It manufactures advanced semiconductor chips for AI applications on behalf of tech giants like Nvidia, AMD, and Apple (AAPL). TSMC's cutting-edge semiconductor fabrication technology enables the development of AI processors for everything from data centers to self-driving cars.
TSMC's ability to mass-produce cutting-edge 5-nanometer and 3-nanometer nodes is critical for AI applications, as evidenced by its impressive growth. Furthermore, TSMC has made a major commitment to U.S. chip manufacturing, aligning with President Donald Trump’s vision. The company reported another strong quarter, as well as a strong finish to 2024.
