Is Taiwan Semiconductor (TSM) Still The Best AI Chip Stock to Buy?

Taiwan Semiconductor Mfg Co Ltd (NYSE:TSM) is possibly the astir captious cogwheel successful the AI revolution. It manufactures the world’s astir precocious semiconductors for companies that plan chips but don’t ain fabrication plants. TSM has astir 62% of the full foundry marketplace and implicit 90% of the marketplace for precocious nodes (7nm and below). Taiwan Semiconductor’s (NYSE:TSM) customers don’t power due to the fact that uncovering different spot foundries is highly hard, if not impossible.

The standard of request successful this rhythm is intelligibly disposable successful the numbers. In Q1 2026, Taiwan Semiconductor (NYSE:TSM) gross roseate 35% twelvemonth implicit year, showing a crisp acceleration successful concern momentum. For Q2, the institution is guiding for astir 32% year-over-year gross growth, and for the afloat twelvemonth 2026, it expects much than 30% gross growth.

Apple relies connected Taiwan Semiconductor (NYSE:TSM) for chips, including for A-series and M-series. Taiwan Semiconductor makes AI GPUs for Nvidia utilized successful information centers. AMD, Qualcomm, Broadcom, MediaTek and Marvell besides trust connected it for production. Read what a Broadcom enforcement precocious said astir the demand Taiwan Semiconductor (NYSE:TSM) is facing here.

Wedgewood Partners stated the pursuing regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) successful its Q1 2026 capitalist letter:

“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was a apical contributor to portfolio show successful the archetypal quarter. Revenues grew +25%, and the Company guided to accelerating gross maturation to +30% successful 2026 arsenic request for compute accelerators for AI applications continues to ramp unabated. In addition, the Company precocious reported that March gross was up +45% twelvemonth implicit year, +31% period implicit month, and +35% twelvemonth to date. The semiconductor lawsuit basal has evolved ....” (Click Here to Read the Letter successful Detail)

While we admit the imaginable of TSM arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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