Taiwan Semiconductor Manufacturing (NYSE: TSM) is a crucial player in the AI chip market, manufacturing chips for major AI giants like Nvidia and Apple. With a strong market share in advanced node technology, TSMC’s revenue is growing, driven by increasing demand and higher prices, leading to improved gross margins.

TSMC’s clear leadership in semiconductor manufacturing gives it strong pricing power and a competitive edge over rivals like Intel and Samsung. Despite geopolitical risks, TSMC is expanding globally to mitigate potential challenges. The company’s position in the semiconductor value chain makes it a safe bet in the AI infrastructure space.

As demand for AI chips continues to grow, TSMC remains well-positioned to benefit from a mid-40% compounded average growth rate in AI-related revenue. Additionally, the rise of autonomous driving could provide further growth opportunities for the company. TSMC’s role as the go-to manufacturer for AI chips makes it a secure investment in the semiconductor industry.

For investors seeking exposure to AI semiconductors without betting on a single chipmaker, TSMC offers a safe and attractively valued option. With a forward P/E ratio of 24 times based on 2025 estimates and a PEG ratio below 0.7, TSMC is considered undervalued. Overall, TSMC stands out as one of the best and safest stocks to buy in the semiconductor market.

Read more at Yahoo Finance: Taiwan Semiconductor Manufacturing Stock Is the Safest AI Chip Bet