Should You Buy Taiwan Semiconductor Manufacturing Company (TSM)?

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the 13 Best Stocks to Invest In According to Billionaire Ken Griffin.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is arguably one of the most important firms in the world due to its ability to manufacture the latest semiconductors efficiently and at scale. The shares are up by 101% over the past year and by 30% year-to-date. The firm entered June on a strong note as it signed a deal with artificial intelligence giant NVIDIA Corporation. Unlike the traditional arrangement, where Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures chips for NVIDIA, this deal saw the firm agree to use its customer’s technologies instead. It will now use NVIDIA’s products, such as cuLitho to streamline the lithography process in chip manufacturing, the Metropolis and TAO toolkits for high-end wafer inspection, and NVIDIA Omniverse for digital twin creation.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s shares currently trade at a forward price-to-earnings multiple of 24.63 which is lower than the semiconductor sector’s 37.29.

Should You Buy Taiwan Semiconductor Manufacturing Company (TSM)?

Brown Advisory Global Leaders Strategy discussed Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q1 2026 investor letter:

“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM): Manufactures, distributes and tests integrated circuits, silicon wafers, diodes and related semiconductor components. Taiwan Semiconductor Manufacturing benefits from its leadership in leading node manufacturing which allows it to take market share and benefit from the strong demand environment for high-performance computing and AI infrastructure.”

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 the cheapest AI stock.

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