Foreign media: TSMC has a unique position in the AI field and its stock price is expected to continue to rise

TSMC has been one of the best stocks to own in the artificial intelligence (AI) space and has a unique position in chip manufacturing, and that dominance has taken the company to new heights. Foreign media The Motley Fool reported that TSMC’s stock price is far from reaching a record high and may reach unprecedented levels by 2027. By the end of next year, its stock price can easily rise to $600 per share, so buying now is definitely a wise move.

TSMC is the only reason why artificial intelligence technology has developed to this point. It is a chip foundry, which means that customers come to it with chip designs and it is responsible for production. This is an excellent position for TSMC because it allows the company to remain neutral in the artificial intelligence race while manufacturing chips for rivals such as Huida and Advanced Micro Devices.

According to Motley Fool research, TSMC will account for more than 70% of global chip foundry revenue by 2025. This means that if a large artificial intelligence company wants to replace its chip foundry, its production capacity may not be enough to meet demand. TSMC's sheer scale relative to its rivals gives it a huge competitive advantage and makes it easy for investors to predict TSMC's growth in the coming years, as its growth is likely to keep pace with spending on artificial intelligence.

Wall Street analysts expect the company's revenue to rise 34% annually next year. This bodes well for another great year for the company, and given TSMC's current valuation, its stock price is poised to rise significantly.

TSMC typically trades at a price-to-earnings ratio of about 28 times at the end of the year. Currently, the company trades at about 20 times earnings (based on next year's expected earnings).