Taiwan Semiconductor Manufacturing (NYSE: TSM) reported impressive Q2 results, showcasing its dominance in the AI chip market. With major chip companies utilizing TSMC’s facilities, the company’s revenue surged 44% year-over-year to $30.1 billion. TSMC controls 68% of the global semiconductor foundry market and has raised its full-year revenue growth outlook to 30%.

Analysts are bullish on TSMC’s earnings through 2027 as the company’s stock has soared 59% in the past three months. With a forward earnings multiple of 24, TSMC is a top pick for investors looking to capitalize on the AI chip boom. Despite its recent growth, the stock still trades at a discount to the broader tech sector.

Investors interested in Taiwan Semiconductor Manufacturing should consider the Motley Fool Stock Advisor’s list of the 10 best stocks to buy now. While TSMC wasn’t on the list, the recommended stocks have the potential for significant returns. The Stock Advisor’s total average return is 1,040%, outperforming the S&P 500 by a wide margin. Don’t miss out on the latest top stock picks from the Motley Fool.

Read more at Nasdaq: This Tech Giant Is the Best Artificial Intelligence (AI) Chip Stock to Buy Right Now