1 Cheap AI Stock to Buy Hand Over Fist Before It Doubles
The booming demand for chips to power artificial intelligence (AI) applications has sent Nvidia's (NASDAQ: NVDA) stock soaring in 2023, with shares of the graphics card specialist jumping 206% this year. But that also means that Nvidia's stock now trades at an extremely expensive multiple.
Nvidia's price-to-sales ratio sits at 45 right now, way higher than the company's five-year average sales multiple of 18. The price-to-earnings ratio of 243 is way higher than the Nasdaq-100 index's multiple of 35. While there is a good chance that Nvidia could justify its expensive multiples with a sharp increase in revenue and earnings in the current fiscal year and beyond, investors with a lower risk appetite may not be comfortable buying the stock at its current multiples.
This is where semiconductor foundry specialist Taiwan Semiconductor Manufacturing (NYSE: TSM) -- popularly known as TSMC -- comes into play.
Source Fool.com
Taiwan Semiconductor Manufacturing Co. Ltd. ADR Stock
The stock is an absolute favorite of our community with 34 Buy predictions and no Sell predictions.
With a target price of 180 € there is a slightly positive potential of 10.84% for Taiwan Semiconductor Manufacturing Co. Ltd. ADR compared to the current price of 162.4 €.
