Is Taiwan Semiconductor (TSM) The Best Undervalued AI Stock to Buy Now?

We just covered the 10 Best Stocks to Buy According to Billionaire Ken Griffin. Taiwan Semiconductor Manufacturing Company (NYSE:TSM) ranks #10 (see the Best Stocks to Buy According to Ken Griffin).

Ken Griffin’s Stake Value: $909,428,811

Taiwan Semiconductor Manufacturing Company (NYSE:TSM) is perhaps one of the best AI semiconductor stocks to buy. The company is among the top beneficiaries of the strong AI chips demand that is expected to continue to soar despite short-term headwinds and market fears. Taiwan Semiconductor Manufacturing Company (NYSE:TSM) holds about 62% of the total foundry market and over 90% of the market for advanced nodes (7nm and below). Major clients like Nvidia, Apple, and Broadcom are reportedly entering agreements to secure capacity 3-4 years in advance.

Read what a Broadcom executive recently said about the demand TSM is facing here.

Taiwan Semiconductor Manufacturing Company (NYSE:TSM) has raised its capital expenditure forecast to $56 billion for 2026 and plans $165 billion in US investments over the next few years. Its moat and high-capacity production make it an attractive buy for the long term despite its gains.  The stock trades at a forward P/E of 20x, slightly above its 5-year average of 19x.

Platinum International Technology Fund explained in its investor letter why TSM business has a long runway for future growth. Click here to read the full text of the letter.

While we acknowledge the risk and potential of TSM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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