Should You Buy Taiwan Semiconductor (TSM) in 2026?

Published on May 21, 2026 at 12:17 pm by Fahad Saleem in News

We just covered the 10 Best Pick and Shovel AI Stocks to Buy for the Long Term. Taiwan Semiconductor Manufacturing Company (NYSE:TSM) ranks #2 (see 5 Best Pick and Shovel AI Stocks to Buy for the Long Term).

Short interest: 0.5%

Taiwan Semiconductor Manufacturing Company (NYSE:TSM) is effectively selling shovels in a gold rush with a near-dominant position in the industry. Its moat is wide because very few companies can match its scale, manufacturing precision at cutting-edge nanometer nodes, and ability to consistently produce high-yield chips for the world’s most advanced AI designs. Global semiconductor sales reached $99.5 billion in March, a 79% year-over-year surge, according to data from the World Semiconductor Trade Statistics organization.

Taiwan Semiconductor Manufacturing Company (NYSE:TSM) has over 60% share of the total foundry market and over 90% of the market for advanced nodes (7nm and below). It makes chips for giants like Nvidia, Apple, Qualcomm, Broadcom and many more.

Read what a Broadcom executive recently said about the demand Taiwan Semiconductor Manufacturing Company (NYSE:TSM) is facing here.

Wedgewood Partners stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q1 2026 investor letter:

“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was a top contributor to portfolio performance in the first quarter. Revenues grew +25%, and the Company guided to accelerating revenue growth to +30% in 2026 as demand for compute accelerators for AI applications continues to ramp unabated. In addition, the Company recently reported that March revenue was up +45% year over year, +31% month over month, and +35% year to date. The semiconductor customer base has evolved to the point that the Company increasingly works directly with….. (Click Here to Read the Letter in Detail).”