Taiwan Semiconductor Manufacturing Company Limited (TSM) Has The Right Approach In Dealing With President Trump, Says Jim Cramer

We recently published Jim Cramer’s Fresh 14 Stocks & Thoughts About Market Performance. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the stocks Jim Cramer recently discussed.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the most important companies in the world. The firm’s importance is due to the fact that it is responsible for producing nearly all of the world’s high-end chips. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is also investing more than $100 billion in the US as part of its bid to bring some of its advanced chip manufacturing capacity to America. These facilities are being built in Arizona and have already started shipping products to big technology firms. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) rose to prominence by being Apple’s primary chip supplier, and it has also established itself in NVIDIA’s AI chip supply chain. Cramer discussed the firm’s strategy of meeting the Trump administration’s bid to bring back manufacturing to American shores:

“Look, I’d like them to do Taiwan Semi, I mean Taiwan Semi and NVIDIA, they’re like the shovel ready and they go there, they pick, they watch tomorrow to see what state is the best and then they like go buy some shovels from Caterpillar and get to work. Yes! Yes! I mean I know it’s not optics if it’s Apple, but yes, they need to. And I don’t care which part. But they need to. And I think that maybe they want to do what they think is great for shareholders, and this is a waste of money for shareholders but we have an aggressive administration. And Taiwan Semi went and put real money and I think that Apple is putting real money and somehow it’s not visible.”

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s relationship with NVIDIA led Cramer to comment in June that the stock had acted as a proxy for the AI GPU company’s stock. Here’s what he had said:

“Taiwan Semi was the proxy, as that went up you could buy NVIDIA.”

While we acknowledge the potential of TSM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.