At the heart of the artificial intelligence (AI) arms race is Taiwan Semiconductor Manufacturing Company (NYSE: TSM), also known as TSMC. It doesn't matter which company's graphics processing units are used to process AI data; they're almost guaranteed to be powered by a TSMC chip, especially if they're from AMD or Nvidia.

Even though AI has been a huge theme in the stock market over the past year, it's just getting started. If you're curious about how much AI will impact a chip company like Taiwan Semiconductor, you must check out this quote from management.

Taiwan Semiconductor makes the world's best chips. It has left competitors like Intel in the dust and has continuously launched cutting-edge chips, like the 3 nanometer (nm) chip that now makes up 15% of TSMC's revenue, despite contributing $0 in 2022. But 3 nm chips aren't the pinnacle for Taiwan Semiconductor, as it's already working on the next smaller iteration, 2 nm chips, which are expected to be launched in 2025.

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Source Fool.com