Stock Prediction of TSMC and Intel using Machine Learning

Abstract

The advancement of communications, computers, healthcare, military systems, transportation, renewable energy, and numerous more uses is made possible by semiconductors, which are a crucial part of electronic equipment. Semiconductors have been experiencing a shortage due to various reasons. Thus, the increasing demand for chips has attracted countless people to invest in the semiconductor industry. Intel Corporation and Taiwan Semiconductor Manufacturing Company Limited (TSMC) are two companies that can be said to be dominating the industry currently as they have been making very advanced chips. As two giant suppliers in the semiconductor industry, they are close substitutes and competitors. This essay is going to evaluate Intel and TSMC s’ stocks for investors by using the method of machine learning to estimate and predict the future trend of the two stocks. The two models that will be used in the essay are the Linear model and the Long Short-Term Memory model (LSTM), showing the outcome of prediction and determining which stock is better for the investment.