Looking to invest in artificial intelligence (AI)? While Nvidia may be the primary focus for many investors, it’s essential to consider other options. Nvidia’s stock has grown to a price-to-sales (P/S) ratio of 36, leading to concerns about overvaluation. Fortunately, there are other AI stocks worth exploring, and two stand out as potential opportunities for significant investor returns.
1. Taiwan Semiconductor
One promising option is Taiwan Semiconductor Manufacturing (TSMC) (NYSE: TSM), Nvidia’s manufacturer. TSMC is the world’s leading producer of advanced chips, making it a crucial player in Nvidia’s success. In addition to its partnership with Nvidia, TSMC manufactures chips for tech giants like Apple and AMD, and has even secured business from industry competitor Intel.
With a strong book of business, TSMC has claimed 61% of the third-party foundry market, positioning it as a compelling investment opportunity.