If I Could Only Buy 1 Semiconductor Stock, This Would Be It

The last few days have been quite challenging for the semiconductor industry. The news of Chinese start-up DeepSeek releasing its open-source AI model DeepSeek-R1 -- which it says cost less than $6 million to create -- has triggered concerns about drastic declines in AI spending. Not surprisingly, semiconductor stocks that have benefited dramatically from the explosive global demand for AI infrastructure are suffering significant drawdowns in this tech sell-off.However, few semiconductor stocks have been negatively affected by disproportionate fears about future AI spending. One is Taiwan Semiconductor Manufacturing (NYSE: TSM) or TSMC, which is estimated to account for 65% of the global foundry market in 2024.Since efficiency improvements can result in better monetization of AI technologies, many technology companies may even increase spending on AI-optimized hardware. Furthermore, semiconductors are used across sectors for multiple applications, excluding AI. Hence, as a leading foundry player, TSMC is relatively immune to variations in global AI spending, so it makes sense to consider it a compelling semiconductor pick in 2025.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool