This Semiconductor Stock Could Be at the Center of the Artificial Intelligence Spending Boom

The artificial intelligence (AI) infrastructure boom continues to march forward, and if the recent decision by Taiwan Semiconductor Manufacturing (NYSE: TSM) to significantly increase its capital expenditure (capex) budget is any indication, we're still in the early innings. Perhaps no company is at more risk of overbuilding than TSMC, because if it builds a bunch of fabs (chip manufacturing plants) that become underutilized down the road, it's going to crush its gross margins and lead to a bunch of unprofitable facilities. As such, its management team made this decision after careful consideration and research.Image source: Getty Images.Meanwhile, one of the companies at the center of the AI infrastructure boom set to benefit from its own bottlenecks is Micron Technology (NASDAQ: MU). While TSMC manufactures logic chips, Micron makes memory components, which need their own separate fabs. The DRAM (dynamic random access memory) market is essentially an oligopoly, and Micron, Samsung, and SK Hynix generally manufacture these chips themselves instead of going to a third-party contract manufacturer.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool