Recent AI infrastructure deals have been massive, with values exceeding $100 billion. Nvidia has been a key player, but AMD and Broadcom are gaining traction with custom AI chips. All three outsource chip production to TSMC, which is positioned to benefit from increased AI spending. Investors should consider TSMC for long-term growth.

TSMC leads the semiconductor foundry market, producing advanced chips like 3nm and upcoming 2nm chips. These new chips promise 25-30% less power consumption, benefiting AI companies. TSMC’s A16 and A14 process nodes in 2026 will continue this trend. TSMC’s stock offers growth at a more reasonable valuation compared to peers.

TSMC’s innovation and efficiency improvements make it a better investment than other AI hardware providers. As the go-to chip manufacturer for Nvidia, AMD, and Broadcom, TSMC is well-positioned for success in the industry. With solid growth and outlook, TSMC is a safer pick for investors looking to capitalize on AI infrastructure spending.

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