Nvidia projects annual global spending on data centers to reach $3 trillion to $4 trillion by 2030. CEO Jensen Huang stated the company is sold out of data center GPUs, indicating strong demand. Taiwan Semiconductor Manufacturing is poised to benefit as a key player in the AI computing hardware race.

TSMC leads in chip technology, with 3nm and upcoming 2nm chips offering significant energy efficiency gains. This positions TSMC to charge a premium for its foundry services, enhancing revenue. The stock is considered undervalued despite its growth trajectory and market positioning in the AI sector.

While other AI stocks may be overvalued, TSMC stands out with solid growth potential. It is seen as a top performer in the coming years, especially as demand for AI accelerates. Investors may benefit from TSMC’s position in the market and its innovative chip technology advancements.

Read more at Yahoo Finance: If AI Spending Really Hits $4 Trillion, This Stock Could Ride the Wave