The semiconductor industry has produced several growth stocks over the last 40 years that have built tremendous wealth for shareholders. It's a $600 billion industry that is going to keep growing over the next decade, but investors need to choose wisely. The arrival of artificial intelligence (AI) is tilting the advantage toward some companies, while exposing weaknesses in others.

Here are two chip stocks to buy now, and one industry stalwart to avoid.

Taiwan Semiconductor Manufacturing (NYSE: TSM), or TSMC for short, is one of the world's leading chipmakers. It operates as a foundry, which means it makes chips for other companies, including Nvidia and Advanced Micro Devices (NASDAQ: AMD).

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Source Fool.com