5 Best Stocks to Buy for Next-Gen Data Centers

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

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the best stocks to buy for next-gen data centers. On April 16, Reuters reported that TSMC raised its annual revenue forecast and said it would increase capital spending this year to meet demand for advanced AI chips. The company expects 2026 revenue to grow more than 30% in U.S. dollar terms, above its prior forecast of close to 30%, while capital expenditure is expected to come in at the high end of its earlier $52 billion to $56 billion range.

The update supports TSMC’s role as the manufacturing layer behind AI data centers, where demand for GPUs, custom accelerators, and advanced packaging depends on leading-edge wafer capacity. Reuters said TSMC is expanding 3-nanometer wafer capacity across Taiwan, the U.S., and Japan, with greater mass-production capacity expected over 2027 and 2028. TSMC also forecast second-quarter revenue of $39 billion to $40.2 billion, compared with $30.1 billion a year earlier and $35.9 billion in the first quarter.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a semiconductor foundry that manufactures advanced chips for customers across AI, high-performance computing, smartphones, automotive, IoT, and other end markets.