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This Artificial Intelligence (AI) Stock Is Underappreciated and Undervalued

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Technology stock valuations are hovering near all-time highs, but some value plays are hiding in the background.

Both the S&P 500 and Nasdaq Composite indexes are hovering around all-time highs. Unsurprisingly, a euphoric narrative surrounding all things touching artificial intelligence (AI) has helped fuel stock prices into the stratosphere.

It’s no secret that valuations in the technology sector are frothy right now. But even so, smart investors have been able to identify some under-the-radar value opportunities.

While companies such as Nvidia, Broadcom, and Advanced Micro Devices fetch a lot of attention in the semiconductor landscape, I’d encourage investors to take a hard look at one of their peers: Taiwan Semiconductor Manufacturing (TSM -0.70%).

Let’s explore TSMC’s unique role in the chip market, as well as the company’s long-term growth prospects and current valuation trends. In my eyes, TSMC is both underappreciated and undervalued, but these dynamics might not last for much longer.

What does Taiwan Semiconductor do?

Semiconductor companies have been some of the biggest beneficiaries throughout the AI revolution. But why?

Chipsets known as graphics processing units (GPUs) are capable of running sophisticated algorithms in parallel, helping businesses achieve breakthroughs across myriad generative AI applications more efficiently. Nvidia and AMD are the two market leaders in GPU design right now.

In addition, companies like Broadcom supply a host of network infrastructure equipment and services needed to outfit data centers with the most advanced AI architectures.

In the background lies TSMC. The company specializes in fabrication and foundry services that help bring chips from the design phase to an actual, physical product. According to data compiled by TrendForce, TSMC holds a 68% share of the global wafer foundry market.

Considering TSMC’s massive lead over the competition, it’s important for investors to understand just how much companies such as Nvidia and many other leading AI developers rely on it.

Image source: Getty Images.

Wall Street is bullish and it’s easy to see why

According to Market.us, the total addressable market for semiconductors is expected to reach $996 billion by 2033 — up from $530 billion just two years ago.

Market.us goes on to project that the semiconductor foundry market will witness an 8.5% compound annual growth rate (CAGR) between 2024 and 2033 — reaching a size of $276 billion by early next decade.

To support these forecasts, consider that global management consulting firm McKinsey & Company reports that AI infrastructure spend could reach nearly $7 trillion by the middle of next decade. Moreover, the firm suggests that chips and related hardware for AI data centers will receive nearly half of this allocated spend.

TSM Revenue Estimates for Current Fiscal Year Chart

TSM Revenue Estimates for Current Fiscal Year data by YCharts

These secular trends all bode well for TSMC, as rising demand for chips is a direct tailwind for the company’s foundry business. Per the figures above, Wall Street analysts are calling for continued revenue and earnings acceleration for TSMC over the next few years as the company seeks to capitalize on rising infrastructure spend.

Is Taiwan Semiconductor stock a buy right now?

With a forward price-to-earnings (P/E) ratio of 24.3, TSMC is trading at a considerable discount when benchmarked against many other leading chip stocks. What is a bit ironic is that companies such as Nvidia, AMD, and Broadcom rely heavily on TSMC’s services, and yet the market places a premium on those businesses over TSMC’s.

TSM PE Ratio (Forward) Chart

TSM PE Ratio (Forward) data by YCharts

As explored above, TSMC is the king of fabrication and foundry services given its market-leading position. Moreover, rising capital expenditures from cloud hyperscalers and continued investment in data center infrastructure suggests that demand for chips remains robust. As a result, TSMC has a high degree of visibility into its future growth prospects.

Although TSMC’s valuation is higher than historical averages, it remains at a considerable discount to levels seen throughout the back half of 2024. If anything, though, its growth narrative has strengthened over the last several months. For these reasons, it may not be flying under the radar for too much longer.

With those factors in mind, I think the company’s current price is reasonable and I see Taiwan Semiconductor as a hidden bargain in a sea of overpriced growth stocks right now. This is a compelling buy-and-hold opportunity for investors with a long-run time horizon.

Adam Spatacco has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.



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Americans May Have To Pay Much More For Electricity. Reason: Artificial Intelligence

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Artificial intelligence is reshaping the future — but not without a cost. A new report by the White House Council of Economic Advisors warns that AI and cloud computing may drive up electricity prices dramatically across the United States unless urgent investments are made in power infrastructure.

The study highlights a significant shift: after decades of minimal electricity demand growth, 2024 alone saw a 2% rise, largely attributed to the surge in AI-powered data centers. The International Energy Agency (IEA) projects that by 2030, data centers in the US could consume more electricity than the combined output of heavy industries such as aluminum, steel, cement, and chemicals.

Productivity Promises VS Power Pressures

Despite the looming challenges, the report does not discount AI’s potential benefits. If half of all US businesses adopt AI by 2034, labor productivity could rise by 1.5 percentage points annually, potentially boosting GDP growth by 0.4% that year. But that promise comes with a price.

To meet the surge in demand, especially when factoring in industrial electrification and efforts to reshore manufacturing, the US would need to invest an estimated 1.4 trillion Dollars between 2025 and 2030 in new electricity generation. That figure surpasses the industry’s investment over the past decade. The study cautions that without the emergence of lower-cost power providers — such as renewables or advanced nuclear — electricity bills will rise sharply.



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Delaware Firm to Evolve Defense Tech Org With Self-Growing AI

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Star26 Capital Inc. is collaborating with Delaware-based Synthetic Darwin to supercharge its defense tech developments through self-growing AI.

This partnership will utilize Darwinslab, an AI ecosystem where digital agents generate, assess, and cultivate other algorithms inspired by biological evolution.

The solution slashes the time needed to build or sustain complex AI systems, shrinking development cycles to days and enabling rapid adaptation to new data and mission needs.

Read the full story on our new publication, Military AI: Delaware Firm to Evolve New York Defense Tech Org Through Self-Growing AI



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AI isn’t just for coders: 7 emerging non-tech career paths in artificial intelligence

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7 emerging non-tech career paths in artificial intelligence

Artificial intelligence is no longer the future. It’s already shaping how we live, work, and learn. From smart assistants to personalised learning apps and automated hiring tools, AI is now part of everyday life. But here’s something many students still don’t realise — you don’t have to be a computer science genius to build a meaningful career in AI.In 2025, AI needs more than just coders. It needs people who understand ethics, design, communication, psychology, policy, and human behaviour. Whether you’re studying law, liberal arts, design, economics, or media, there is space for you in this fast-growing field. These emerging roles are all about making AI more responsible, more human, and more useful.Here are seven exciting non-tech career paths in artificial intelligence that you can start exploring now.

AI ethics specialist

AI systems make decisions that can affect real lives — from who gets hired to who receives a loan. That’s why companies and governments need experts who can guide them on what’s fair, what’s biased, and what crosses a line. Ethics specialists work closely with developers, legal teams, and product leaders to make sure AI is built and used responsibly.Best suited for: Students from philosophy, sociology, law, or political science backgroundsWhere to work: Tech companies, research institutes, policy think tanks, or digital rights NGOs

AI UX and UI designer

AI tools need to be easy to use, intuitive, and accessible. That’s where design comes in. AI UX and UI designers focus on creating smooth, human-centered experiences, whether it’s a chatbot, a virtual assistant, or a smart home interface. They use design thinking to make sure AI works well for real users.Best suited for: Students of psychology, graphic design, human-computer interaction, or visual communicationWhere to work: Tech startups, health-tech and ed-tech platforms, voice and interface design labs

AI policy analyst

AI raises big questions about privacy, rights, and regulation. Governments and organisations are racing to create smart policies that balance innovation with safety. AI policy analysts study laws, write guidelines, and advise decision-makers on how to manage the impact of AI in sectors like education, defense, healthcare, and finance.Best suited for: Public policy, law, international relations, or development studies studentsWhere to work: Government agencies, global institutions, research bodies, and policy units within companies

AI behavioural researcher

AI tools influence human behaviour — from how long we scroll to what we buy. Behavioural researchers look at how people respond to AI and what changes when technology gets smarter. Their insights help companies design better products and understand the social effects of automation and machine learning.Best suited for: Students of psychology, behavioural economics, sociology, or educationWhere to work: Tech companies, research labs, social impact startups, or mental health platforms

AI content strategist and explainer

AI is complex, and most people don’t fully understand it. That’s why companies need writers, educators, and content creators who can break it down. Whether it’s writing onboarding guides for AI apps or creating videos that explain how algorithms work, content strategists make AI easier to understand for everyday users.Best suited for: Students of journalism, English, media studies, marketing, or communicationWhere to work: Ed-tech and SaaS companies, AI product teams, digital agencies, or NGOs

AI program manager

This role is perfect for big-picture thinkers who love connecting people, processes, and purpose. Responsible AI program managers help companies build AI that meets ethical, legal, and user standards. They coordinate between tech, legal, and design teams and ensure that AI development stays aligned with values and global standards.Best suited for: Business, liberal arts, management, or public administration studentsWhere to work: Large tech firms, AI consultancies, corporate ethics teams, or international development agencies

AI research associate (non-technical)

Not all AI research is about coding. Many labs focus on the social, psychological, or economic impact of AI. As a research associate, you could be studying how AI affects jobs, education, privacy, or cultural behaviour. Your work might feed into policy, academic papers, or product design.Best suited for: Students from linguistics, anthropology, education, economics, or communication studiesWhere to work: Universities, research labs, global think tanks, or ethics institutesThe world of AI is expanding rapidly, and it’s no longer just about math, code, and machines. It’s also about people, systems, ethics, and storytelling. If you’re a student with curiosity, critical thinking skills, and a passion for meaningful work, there’s a place for you in AI — even if you’ve never opened a programming textbook.TOI Education is on WhatsApp now. Follow us here.





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