Is Taiwan Semiconductor Manufacturing (TSM) One of the Top AI Stocks to Buy According to Philippe Laffont?

Neha Gupta

Mon, July 6, 2026 astatine 10:24 AM CDT 2 min read

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) is one of the apical AI stocks to buy, according to billionaire Philippe Laffont. On June 29, Barclays reiterated that Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) is good positioned for robust maturation amid beardown request for precocious logic wafer supply.

Dragon Images/Shutterstock.com

According to Barclay's expert Simon Coles, the marketplace is clamoring for precocious logic wafer supply, which is translating into booming concern for the company. Amid the beardown marketplace demand, the concern slope has reiterated an Overweight standing connected the banal and hiked the terms people to $625 from $470. The caller terms people represents important upside imaginable arsenic the banal is trading astatine astir $455 a share.

Barclays insists that Taiwan Semiconductor Manufacturing is 1 of the apical concern plays for gaining vulnerability to artificial intelligence. The probe steadfast expects the company's competitory borderline to proceed increasing arsenic superior expenditures are poised to summation from $56 cardinal successful 2026 to $74 cardinal successful 2027.

S&P Global Ratings has already affirmed its AA- semipermanent issuer recognition standing connected the stock, impressed by the marketplace enactment successful the planetary semiconductor foundry sector.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) is the captious manufacturing backbone of the planetary AI industry. While it does not plan chips itself, it produces implicit 90% of the world's astir precocious leading-edge semiconductors, fabricating the processors that powerfulness AI information centers, autonomous systems, and generative AI models.

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.

READ NEXT: 9 Best Energy Dividend Stocks to Invest In Now and 10 Best Dividend Aristocrat Stocks To Buy Now.

Disclosure: None. Follow Insider Monkey connected Google News.