Satya Nadella Says "All Software Is Being Rewritten." Here's 1 of the Best Artificial Intelligence (AI) Stocks to Own for 2026.

Microsoft CEO Satya Nadella said past twelvemonth that arsenic overmuch arsenic 30% of Microsoft's codification was being written by artificial quality (AI). I tin lone ideate that fig is higher now.

Humans are inactive decidedly needed to support quality, a information proved by Microsoft appointing Charlie Bell, erstwhile caput of the company's information business, to present absorption exclusively connected maintaining the prime of the company's products. He reports straight to Nadella.

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Microsoft intelligibly doesn't program connected cutting the magnitude of its codification written by AI. Nadella himself said it was steadily increasing, and CTO Kevin Scott predicted that by 2030, 95% of the company's codification mightiness beryllium written by AI.

With that successful mind, what is the champion mode to play AI becoming a imperishable portion of the IT industry? By my math, 1 of the champion single-ticker ways to play it is Taiwan Semiconductor Manufacturing (NYSE: TSM).

Taiwan is wherever a afloat 60% of each the world's semiconductor chips are produced.

But the country's footprint is adjacent bigger than that implies due to the fact that 90% of the world's precocious semiconductor chips, those 7 nanometers (nm) oregon smaller, are produced successful Taiwan.

And those are the chips you request to tally the high-end AI programs Microsoft and others are utilizing to constitute their code.

Microsoft uses a batch of Nvidia hardware to tally its AI. So does beauteous overmuch everyone else. IOT Analytics reports that Nvidia controls 92% of the information halfway GPU market. Its nearest rival is Advanced Micro Devices astatine 4%.

But those Nvidia graphics processor units (GPUs) are manufactured by Taiwan Semiconductor. So are its rival AMD's, on with Apple, Broadcom, Qualcomm and others, either successful full oregon successful part.

In fact, Nvidia's top-of-the-line Blackwell spot is produced astatine a Taiwan Semiconductor mill successful Arizona.

The semiconductor spot market, and by hold the AI information halfway hardware market, simply does not beryllium without Taiwan Semiconductor, which doesn't plan immoderate of the chips it produces.

Taiwan Semiconductor is simply a "pure foundry" company. All it does is nutrient chips connected contract. But it's utterly ascendant successful the space, with 72% marketplace stock arsenic of Q3 2025. Samsung is successful 2nd spot with 7%.

You've heard of pick-and-shovel plays, I'm sure. But Taiwan Semiconductor is the pick-and-shovel play for the AI manufacture and the tech manufacture much broadly.