Taiwan Semiconductor Manufacturing Company Limited (TSM): Top AI Stock to Buy According to Billionaire David Tepper on Robust Revenue Growth

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the best AI stocks to buy for 2026, according to billionaire David Tepper. On May 8, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) delivered April revenue figures that affirmed strong demand for artificial intelligence chips.

Taiwan Semiconductor Manufacturing Company Limited (TSM): Top AI Stock to Buy According to Billionaire David Tepper on Robust Revenue Growth

The company’s April revenue was up 17.5% year over year to $13.08 billion. Revenue for the first four months of the year was up by 29.9%. The robust revenue growth underscores the company’s increasingly prominent role in the global semiconductor supply chain as demand for AI infrastructure and advanced AI chips grows.

On the other hand, Taiwan Semiconductor Manufacturing has entered into a strategic collaboration with Sony Semiconductor Solutions Corporation. The companies are joining forces to enhance the development and manufacturing of next-generation image sensors. The companies are to establish a joint venture with Sony as the majority and controlling shareholder.

The joint venture is to leverage Sony’s expertise in sensor design alongside TSMC’s strengths in process technology and manufacturing to enhance image sensor performance.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) dominates advanced AI chip manufacturing for clients such as Nvidia, AMD, and Apple, leveraging AI to optimize production. It controls over 90% of high-end chip production and supports scalable AI hardware with advanced packaging.

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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