Richard Clode, fund manager at Janus Henderson Investors, said a global chipmaker stands to benefit from a “tremendous growth opportunity” from the artificial intelligence trend. That’s TSMC, Crowder said. “Ultimately, when you look at it three years from now, your iPhone is going to have to have a lot of AI capabilities. Every laptop, PC, car has to have AI capabilities, and the way to give all of these devices AI capabilities is to have more powerful semiconductors in them,” he said Wednesday on CNBC’s Pro Talks. “Now, how you make more powerful semiconductors, you … have to be more advanced,” Crowder said, citing TSMC’s superior 3-nanometer chip technology. He said this reversed the trend of the past few decades where “everyone was fleeing the frontier” because it was “too expensive”. “So I think what really gives TSMC a huge growth opportunity in the long run is that every single chip has to get bigger to accommodate the computing performance needs to provide all these AI co-pilots that hopefully we’re all going to be using in the next few years,” he said. Clode manages the Horizon Global Technology Leaders Fund and the Horizon Sustainable Future Technology Fund. His fund’s top holdings include chipmakers Nvidia and TSMC, payments giants Mastercard and Visa, and a string of big tech stocks. Both of Crowder’s funds have outperformed the S&P 500’s half-year return of nearly 16%, even as the tech-heavy Nasdaq Composite has matched it, at nearly 37%. The Horizon Global Technology Leaders Fund was up about 34% in the six months to the end of June, while the Horizon Sustainable Future Technologies Fund was up 25%. TSMC, the world’s largest chipmaker, is said to be a potential beneficiary of artificial intelligence-related stocks such as Nvidia. Nvidia relies on Taiwan Semiconductor Manufacturing Company (TSMC) to manufacture its graphics processing units. On Thursday, however, the Taiwanese chipmaker reported a sharp drop in second-quarter profit amid sluggish demand for consumer electronics. Analysts covering the stock see a potential upside of nearly 15%, with 92% of them rating the company a buy, according to FactSet.