We just covered the 10 Best Stocks to Buy Right Now According to AI and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) ranks 1st on this list.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest dedicated pure-play semiconductor foundry, serving as the essential manufacturing backbone for the global technology industry
Operating an advanced manufacturing model, TSMC does not design or market its own branded chips; instead, it manufactures semiconductors for the world’s leading technology and chip design firms, including Apple, NVIDIA, AMD, and Broadcom. The company commands an absolute monopoly in leading-edge process nodes, specifically its 3-nanometer and 5-nanometer technologies, which are required to build advanced AI accelerators, high-performance computing systems, and smartphone processors. Financially, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is undeniably strong, especially based on its record-breaking Q1 2026 earnings presentation.
In the first three months of the year, the chip giant reported consolidated quarterly revenue of $35.9 billion, representing a 40.6% year-over-year increase, with 3nm and 5nm technologies accounting for 61% of total wafer revenues. TSMC’s elite pricing power was evident as gross margins reached 66.2%, prompting management to revise its long-term gross margin target upward to 56% and above through the market cycle. Driven by booming demand for AI accelerators, Taiwan Semiconductor Manufacturing raised its full-year 2026 revenue growth guidance to above 30% in US dollar terms.