{"id":30812,"date":"2025-08-29T13:30:14","date_gmt":"2025-08-29T13:30:14","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/30812\/"},"modified":"2025-08-29T13:30:14","modified_gmt":"2025-08-29T13:30:14","slug":"meet-the-genius-artificial-intelligence-ai-stock-that-nvidia-ceo-jensen-huang-said-is-a-very-smart-buy","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/30812\/","title":{"rendered":"Meet The Genius Artificial Intelligence (AI) Stock That Nvidia CEO Jensen Huang Said Is a “Very Smart” Buy"},"content":{"rendered":"\n

Nvidia<\/strong>‘s (NASDAQ: NVDA) CEO, Jensen Huang, has transformed his company into the world’s largest by identifying trends earlier than anyone else. This is how Nvidia captured a significant portion of the AI computing market, delivering substantial gains to its shareholders.<\/p>\n

So, when Jensen Huang calls a company’s stock a “very smart buy,” investors should listen up.<\/p>\n

What company was Huang talking about when he mentioned this? It’s none other than a key Nvidia supplier, Taiwan Semiconductor <\/strong>(NYSE: TSM).<\/p>\n

\"Person Image source: Getty Images. <\/p>\n

During a visit to TSMC, Jensen Huang stated:<\/p>\n

\n

Well, first of all, I think TSMC is one of the greatest companies in the history of humanity, and anybody who wants to buy TSMC stock is a very smart person.<\/p>\n<\/blockquote>\n

That’s huge praise from the man who leads and founded the world’s largest company. But is he right?<\/p>\n

Taiwan Semiconductor, widely known as TSMC, is in a strong and unique position in the chip world<\/a>. It’s a semiconductor foundry that produces chips for companies like Nvidia that lack the in-house capabilities to do it themselves. This fosters a strong working relationship, as they each depend on one another. Nvidia isn’t the only company that uses TSMC; others, such as AMD <\/strong>(NASDAQ: AMD) and Apple <\/strong>(NASDAQ: AAPL), do also.<\/p>\n

This raises a key point about TSMC: It often produces chips for companies that are competing against each other. AMD and Nvidia are vying for supremacy in AI computing power, and Apple’s iPhones are competing against Google’s Pixel phones, which have just started using TSMC-made chips. With TSMC remaining neutral and acting only as a supplier to companies battling it out, it’s in a position to capitalize on several key trends without needing to develop the winning product.<\/p>\n

As long as TSMC can stay on top with the technology it offers, it will maintain its market leadership position.<\/p>\n

By the end of the year, TSMC’s next chip node, the 2nm (nanometer) chip, will be in production. This chip offers substantially better power consumption (25% to 30% improvement) compared to the 3nm variety when configured at the same speed. While concern grows about the power consumption of AI data centers, this innovation is expected to be a massive hit among tech companies. Additionally, TSMC has 1.6nm and 1.4nm designs in the pipeline, which are expected to offer similar power consumption improvements.<\/p>\n

Story Continues <\/p>\n

Clearly, TSMC is one of the world’s most innovative companies, and the successes of many tech giants can be traced back to it. But is it a smart buy now?<\/p>\n

Taiwan Semiconductor has put up jaw-dropping growth in recent quarters, with Q2’s revenue rising 44% year over year in U.S. dollars. That makes it one of the fastest-growing big tech stocks, trailing only Nvidia. Despite that, the market hasn’t placed a premium valuation on TSMC’s stock, as it only trades for 24 times forward earnings.<\/p>\n

\"TSM<\/a> TSM PE Ratio (Forward)<\/a> data by YCharts<\/a> <\/p>\n

Considering that the S&P 500 <\/strong>(SNPINDEX: ^GSPC) trades for 23.7 times forward earnings, this indicates TSMC is valued about the same as an average S&P 500 stock. With its key position in the AI arms race, as well as its growth, I think this is a huge bargain. Therefore, Jensen Huang’s statement about how smart people are buying TSMC stock is absolutely correct.<\/p>\n

I think Taiwan Semiconductor is one of the top AI stocks<\/a> to buy now, as the AI arms race spending spree is still going strong.<\/p>\n

Before you buy stock in Taiwan Semiconductor Manufacturing, consider this:<\/p>\n

The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a><\/strong> for investors to buy now\u2026 and Taiwan Semiconductor Manufacturing wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n

Consider when Netflix<\/strong> made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $659,823<\/strong>!* Or when Nvidia<\/strong> made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,113,120<\/strong>!*<\/p>\n

Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is 1,068% \u2014 a market-crushing outperformance compared to 185% for the S&P 500. Don\u2019t miss out on the latest top 10 list, available when you join Stock Advisor.<\/p>\n

See the 10 stocks \u00bb<\/strong><\/a><\/p>\n

*Stock Advisor returns as of August 25, 2025<\/p>\n

Keithen Drury<\/a> has positions in Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy<\/a>.<\/p>\n

Meet The Genius Artificial Intelligence (AI) Stock That Nvidia CEO Jensen Huang Said Is a “Very Smart” Buy<\/a> was originally published by The Motley Fool<\/p>\n","protected":false},"excerpt":{"rendered":"Nvidia‘s (NASDAQ: NVDA) CEO, Jensen Huang, has transformed his company into the world’s largest by identifying trends earlier…\n","protected":false},"author":2,"featured_media":30813,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261],"tags":[291,289,290,18,19,17,3573,292,4184,82],"class_list":{"0":"post-30812","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-eire","12":"tag-ie","13":"tag-ireland","14":"tag-jensen-huang","15":"tag-nvidia","16":"tag-taiwan-semiconductor","17":"tag-technology"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/30812","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=30812"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/30812\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/30813"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=30812"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=30812"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=30812"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}