From Yahoo Finance: 2025-04-26 14:25:00

In 2025, AI stocks are struggling due to trade war pressure, high valuations, and slowing demand. Taiwan Semiconductor Manufacturing (TSMC), down 27% from its peak, offers a buying opportunity. TSMC dominates the global chip production market, serving tech giants like Apple and Nvidia, with strong growth potential in AI.

Despite challenges, TSMC’s revenue surged 41.6% in Q1, driven by AI chip demand. The company’s expertise in advanced chips and high-performance computing positions it well for growth. As TSMC expands globally, its competitive advantages strengthen, making it a solid long-term investment at a discounted valuation.

TSMC’s expansion plans include building plants worldwide, notably in the U.S. under the CHIPS Act. With a low valuation and growth potential, TSMC is poised for success amid geopolitical tensions. Considered a dominant tech company, TSMC’s sustainable competitive advantages make it an attractive investment option.

Read more: 1 No-Brainer AI Stock Down 27% to Buy the Dip on Right Now (Hint: It’s Not Nvidia)