TSMC and IBM: Top AI Stocks with Strong Dividends and Growth Potential

Shares of Taiwan Semiconductor Manufacturing Co. (TSMC) and IBM have outperformed the S&P 500 over various time periods. TSMC stock has excelled over a decade. Both companies currently offer dividends, with TSMC yielding 1.26% and IBM 2.31%. The global AI market is projected to skyrocket to $4.8 trillion by 2033. Most AI stocks do not pay dividends, but some top performers like TSMC and IBM do. TSMC dominates chip production for AI, with Apple as a major customer. Its revenue and EPS are growing impressively. IBM is transitioning to focus on high-growth markets like AI and cloud computing. Its revenue and FCF have increased, with a strong AI business contributing to growth. IBM has a history of increasing quarterly cash dividends for 30 years. Both TSMC and IBM are expected to release Q2 results in July. Considerations before investing $1,000 in Taiwan Semiconductor Manufacturing include the company’s performance compared to other stock options recommended by analysts. The Motley Fool recommends 10 stocks for investors to consider, excluding TSMC. Stocks recommended by the Motley Fool have historically shown high returns compared to the S&P 500.

Read more at Nasdaq: 2 Top Artificial Intelligence (AI) Stocks That Pay Decent Dividends and Have Good Dividend-Paying Histories