5 Best Future Stocks to Buy for the Next 5 Years

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1. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM)

Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) is one of the best future stocks to buy for the next 5 years. On April 1, Reuters reported that Taiwan Semiconductor Manufacturing Co. Ltd., or simply TSMC, is set to launch 3-nanometre wafer production at its second factory in Japan in 2028. According to a Taiwanese government filing, the facility will have a monthly capacity of 15,000 12-inch wafers using this advanced process technology.

This follows a February meeting between TSMC CEO CC Wei and Japan’s Prime Minister Sanae Takaichi, where the shift toward more sophisticated semiconductor manufacturing was first indicated. This strategy marks an advancement from TSMC’s earlier plans for its Japanese operations, which initially focused on less-advanced nodes. While the first fabrication plant began volume production in late 2024, the total investment for the first two facilities is expected to exceed $20 billion.

Reports suggest the second factory alone could require ~$17 billion in investment, though Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) has not officially confirmed that specific figure. The venture is managed through Japan Advanced Semiconductor Manufacturing/JASM, a unit established in 2021 with support from Sony Semiconductor Solutions Corporation. Together, these facilities are projected to reach a combined monthly capacity of 100,000 12-inch wafers, spanning a range of technologies from 40-nanometre down to the new 3-nanometre standard.

Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) is a technology company that develops ICs and other semiconductor devices. Its products are used in HPC, smartphones, IoT, automotive, and consumer electronics.

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.

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