Ghazal Ahmed
Sat, Apr 26, 2025, 10:08 AM 4 min read
In This Article:
We recently compiled a list of the 12 AI Stocks Analysts Are Talking About Right Now. In this article, we are going to take a look at where Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stands against the other AI stocks.
Latest reports from the IMF reveal that economic gains from artificial intelligence are likely to outweigh the costs of rising carbon emissions from the data centers needed to run AI models. The report, released at the IMF’s annual spring meeting in Washington, revealed how artificial intelligence is going to boost global output by around 0.5% a year between 2025 and 2030. At the same time, it also noted how these output gains will not be shared equally worldwide.
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"Despite challenges related to higher electricity prices and greenhouse gas emissions, the gains to global GDP from AI are likely to outweigh the cost of the additional emissions. The social cost of these extra emissions is minor compared with the expected economic gains from AI, yet it still adds to the worrisome buildup of emissions”.
Considering that energy policies remain the same and artificial intelligence use becomes widespread, greenhouse gas emissions will see a cumulative global increase of 1.2% between 2025 and 2030. However, a switch to greener energy policies would limit the increase to 1.3 Gt.
Quantifying the social cost of these emissions, the report calculated that the extra cost is likely to be at $50.7-$66.3 billion, which is smaller than the income gains that can help boost the economy by 0.5% each year through AI.
According to the Grantham Research Institute on Climate Change and the Environment, AI may even be able to generate an overall reduction in carbon emissions if it accelerates advances in low-carbon technologies in the power, food, and transport sectors.
"But market forces alone are unlikely to successfully drive AI's application toward climate action. Governments, tech companies and energy companies must play an active role in ensuring AI is used intentionally, equitably and sustainably.”
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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