March 29, 2024, 11:05 a.m.
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Brief news summary

The AI bull market has fueled the rise of stocks related to artificial intelligence, with Nvidia leading the way as a provider of GPU components. However, there are other promising stocks to consider. Micron Technologies is capitalizing on the AI boom with its leadership in memory chips, which are vital for AI servers. The company expects prices for its chips to increase, resulting in record revenue and improved profitability. Taiwan Semiconductor Manufacturing, the largest contract semiconductor foundry, holds a significant market share in third-party chip manufacturing, including AI chips. With its strong revenue growth and impressive operating margin, TSMC is well-positioned in the AI market. Both Micron and TSMC offer enticing investment opportunities in the AI era, with Micron's revenue projections and TSMC's market dominance making them attractive choices for investors.

The AI bull market is driving stocks to all-time highs, with a focus on generative AI technology. Nvidia, known for its GPU components, has been the biggest winner so far. Two other stocks to watch are Micron Technologies and Taiwan Semiconductor Manufacturing (TSMC). Micron's memory chips are in high demand in AI servers, leading to growth in high-bandwidth memory and increased prices for its DRAM and NAND chips. Micron expects record revenue and improved profitability in fiscal 2025. Its memory and storage components make it a likely winner in AI.

With a potential price-to-sales ratio of around 4, Micron offers an attractive valuation. TSMC, the world's largest contract semiconductor foundry, has over 50% market share in third-party chip manufacturing, making it a dominant player in the industry. TSMC's revenue growth has accelerated, signaling increased demand for AI chips. It boasts a strong operating margin of 41. 6% and is attractively priced with a price-to-earnings ratio of 28. TSMC's competitive advantages and pricing power make it well-positioned for the AI era.


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