2 Reasons Taiwan Semiconductor Is a Must-Buy for Long-Term Investors

Few companies have as strong a growth trajectory as Taiwan Semiconductor Manufacturing (NYSE: TSM). TSMC, as it's also known, is the world's largest contract chip manufacturer, which means that it acts as a fabrication company for those who do not have the capabilities to produce chips themselves. This positions TSMC nicely for the road ahead and makes it a must-own for nearly all investors.However, a wrench was recently thrown into the AI investment thesis by DeepSeek's R1 model, which has taken the world by storm. So, is this a big deal for TSMC? Or will it be OK in the long run?Although DeepSeek's R1 model is a true innovation, it doesn't affect the long-term viability of investing in TSMC. The biggest breakthrough DeepSeek found in its generative AI model is a way to make training more efficient, which requires less computing power.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool