The hottest large-cap stock over the past the past five years is undoubtedly Nvidia (NASDAQ: NVDA), which is up over 2,900% during that stretch. However, if you missed out on Nvidia, there is another stock in the semiconductor space that looks like it could be a nice winner in the years ahead: Taiwan Semiconductor Manufacturing (NYSE: TSM), or TSMC for short.

Let's look at why TSMC could be a big winner over the next few years.

As the largest semiconductor contract manufacturer in the world, TSMC plays a vital role in the ongoing buildout of artificial intelligence (AI) infrastructure. Today, many top semiconductor companies use what is known as a fabless model, which basically just means that they design the chips but they don't manufacture them. Fabs, also known as foundries, are chip manufacturing facilities. That's where Taiwan Semiconductor comes in.

Continue reading

Source Fool.com