15 Best Trending AI Stocks to Watch in 2026 

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6. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Number of Hedge Fund Holders: 234

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the best trending AI stocks to watch in 2026. Susquehanna lifted the price target on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) to $575 from $500 on June 22 and maintained a Positive rating on the shares. The firm updated its model, including its capex and capacity strategy, which it believes will exceed both consensus and buy-side expectations. Susquehanna believes that the key uncertainty remains how token growth and the associated silicon requirements could drive potential supply-demand imbalances.

For reference, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) announced its May 2026 revenue report on June 10, reporting that on a consolidated basis, revenue for May 2026 was approximately NT$416.98 billion, reflecting an increase of 1.5% from April 2026 and an increase of 30.1% from May 2025. It added that revenue for January through May 2026 totaled NT$1,961.80 billion, up 30.0% compared to the same period in 2025.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the largest contract semiconductor manufacturer in the world. Some of its prominent customers include semiconductor companies that outsource all or part of their chip production, including Advanced Micro Devices, Nvidia, Broadcom, and more.

While we acknowledge the potential of TSM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TSM and that has 100x upside potential, check out our report about the cheapest AI stock.

Click to continue reading and see the 5 Best Trending AI Stocks to Watch in 2026.

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