Two of the biggest names in artificial intelligence (AI) of late have been chip powerhouses Arm Holdings (NASDAQ: ARM) and Nvidia (NASDAQ: NVDA). Shares of the former have soared 70% so far this year while the latter is coming off an exceptional 2023 during which its value skyrocketed by nearly 239% en route to making it one of the most valuable companies in the world. For investors looking to take advantage of the growth opportunities within AI, it may seem like it's too late to invest in the best players.

Both Arm and Nvidia are likely to keep growing, but investors may not be too keen on buying them at their current valuations. But not all AI stocks trade at a huge premium today. One that still looks relatively cheap is Taiwan Semiconductor Manufacturing (NYSE: TSM), better known as TSMC.

TSMC is the world's leading third-party semiconductor foundry, and its business can benefit significantly from an uptick in demand for chips. The company projects that this year, its top line could grow by more than 20% as it benefits from strong demand for higher-end chips. CEO C.C. Wei sees the business playing a big role in the future of AI: "We are a key enabler for AI applications. So far today, everything you saw for AI comes from TSMC."

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Source Fool.com