Recently, Nvidia became the most valuable company in the world and the first to earn $ 4 trillion worth of dollars.
These other stocks are not only the construction of any technology.
It trades a reasonable evaluation and has a long growth path.
10 stock we like more than Taiwan’s semiconductor production ›
Everyone speaks Nvidia (NASDAQ: NVDA)And it has been for several years. The shares of the artificial intelligence (AI) have increased by 1600%over the last five years, and this month has reached a huge phase and became the first $ 4 trillion dollars.
But if I had to choose AI shares today, it would not be Nvidia. Not that NVIDIA is not a great company with a lot of potential, but because there is another shares that seem more attractive today.
Actually, I was not looking for the stock. Many investors want to recover AI trends by determining which shares offer AI. I don’t invest in that way; I have the criteria that I want to meet with stocks that could be in any industry, although diversifying categories is really important.
But I understand the desire to invest in AI, especially if you are a growth investor. A lot of growth, which is expected to be much more, is happening. NVIDIA itself reports a wonderful increase, including 69 percent. Increase in the last quarter of the year. According to Grand View studies, the AI market is expected to increase by almost 36% to 2030. The overall annual growth rate.
Image Source: Getty Images.
Today, however, there are various opinions about NVIDIA, trading as high as it is. There seems to be no doubt that it may continue to grow, but its heavenly floors are a certain risk, and it may be expensive under a certain metric. NVIDIA shares are traded by price to sales ratio of 29, while the P/E ratio is 55. It is worth a particular bonus but premium.
There may also be ceilings as much as investors grow, depending on its size. If the NVIDIA reserves double, it will reach the top $ 8 trillion market. If you are looking for stocks that could double your money, NVIDIA may not do it as quickly as other promotions.
So which stock would I choose instead? I recently bought shares Production of Taiwan semiconductors(NYSE: TSM)So it’s an easy answer. Again, I did not buy it to buy AI shares. This was distinguished by me for a variety of reasons, one of which is its prospects for growth, and it is related to the progress that it needs its products. If, however, it was just a stock and had no other options, I would not have considered it.
So this is one of the reasons why the TSMC looks attractive as stock: it is not a single trick pony. There is a risk of investing in pure games, as is the risk of investing in any company that is based on the current trend of its business. It was briefly Berkshire Hathaway 2023 A portfolio that can give you stability. At that time Buffett called it ‘one of the best -managed companies and [most] Important companies in the world. “Buffett usually does not give reasons to sell shares, but he was open about his choice of TSM. He was worried about its location, seeing the risk that has to be played today.” Wonderful people and wonderful competitive situation and everything, “he said,” he said. “[but] I would rather find it in the US. “
I say that it was done to some degree because it seems to be sensitive to tariff changes, but nevertheless continued to demonstrate resistance and growth, as well as action to diversify its global factories and less influence on tariffs. These are the thumb of investment theses.
According to Statista, TSMC is working with many customers and is responsible for 58% of the world semiconductor market. As the current leader, he has the advantage over competition in industry with major obstacles to. Because it has many partners in many spaces, it is protected from any of their changes, such as ai.
Then there is the initial strength you want to see in the big stock: strong growth, strong profitability and long -term perspective.
In the second quarter, revenue increased by 39% per year, with upper value, and net income increased by 61%. The total margin has improved 5.1 percentage points and the action margin is 7.1 percentage points. The high -performance segment, which includes AI, increased to 60% in total, but all its segments grew, except cars that remained flat. It is likely that he will remain the main growth driver for the time being, but he does not have all his eggs in one bag.
The rates cause constant concerns, so demand for importers can be increased to obtain chips before increasing rates. The management pointed out that importers are responsible for tariffs rather than TSMC, and this is also highly invested in US devices to compensate for this risk.
Taiwan’s semiconductor reserves trade in a ratio of 31 p/e, while the price to sales ratio is 13, which is based on promotions with its potential. If you are looking for the highest in stocks that are not just ai, the Taiwan semiconductor is a great choice.
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Jennifer Saibil is a Taiwan semiconductor production position. The Motley fool is a position and recommends the production of Berkshire Hathaway, Nvidia and Taiwan semiconductors. The Motley fool has a disclosure policy.
If I could upload any of the artificial intelligence (Ai) shares, it would be this (hint: this is not nvidia) initially announced by Motley Fool
