Is Taiwan Semiconductor the Smartest Investment You Can Make Today?

• The apical AI companies usage TSMC arsenic their manufacturing foundry.

• Revenue jumped 40% twelvemonth implicit twelvemonth successful the astir caller quarter, and the banal roseate 53% successful 2025.

• 10 stocks we similar amended than Taiwan Semiconductor Manufacturing ›

Dig into the banal marketplace these days, and 1 could easy beryllium overwhelmed by the concern options. The New York Stock Exchange includes 2,200 companies, and determination are different 3,450 stocks listed connected the Nasdaq exchange. Let's adhd to that fig the stocks connected the over-the-counter markets, wherever you person astir 6,500 much names from which to choose. And past determination are exchange-traded funds (ETFs), which see baskets of stocks. There are much than 14,000 ETFs disposable globally.

So, with each those choices successful beforehand of you, however is it imaginable to take the smartest azygous concern to marque successful 2026?

One method is to constrictive down the investing themes. Artificial quality (AI) has been a immense operator successful caller quarters, with galore of the apical tech companies seizing the accidental to physique products and bring tremendous wealthiness to their shareholders. Stocks successful the grouping known arsenic the Magnificent Seven, which comprise the largest tech stocks successful the S&P 500, are starring names successful the AI contention and person grown to valuations exceeding $1 trillion each. In fact, these 7 companies present marque up 34% of the S&P 500's valuation, achieving a instrumentality of astir 700% from 2015 to 2024.

It would beryllium a astute play to put successful 1 oregon much of these Magnificent Seven stocks. But considering that these companies are often competing with each different for supremacy, the smartest play lies extracurricular this grouping with a institution that stands to payment from the AI build-out careless of which Magnificent Seven banal emerges successful a ascendant position.

Here's wherefore I deliberation Taiwan Semiconductor Manufacturing (NYSE: TSM), amended known arsenic TSMC, is the smartest concern you tin marque today.

AI is an tremendous tract that's getting bigger, seemingly by the day. Grand View Research estimates that the AI marketplace was worthy $390.91 cardinal successful 2025 and volition beryllium worthy astir $3.5 trillion by 2033, which represents a compound yearly maturation complaint of 30.6%. Nvidia CEO Jensen Huang has been adjacent much bullish, estimating that AI infrastructure unsocial could beryllium worthy $4 trillion by 2030.

At the intersection of each this maturation is TSMC, which is the world's largest foundry for semiconductor chips. The institution produced much than 11,800 abstracted products successful 2024, utilizing astir 300 antithetic process technologies. And astir importantly, immoderate of the biggest AI companies successful the satellite usage TSMC's foundries, including Apple, Qualcomm, Advanced Micro Devices, Broadcom, Nvidia, Intel, and Amazon.