Artificial intelligence (AI) stocks, including semiconductor stocks like Nvidia and Broadcom, had a strong year in 2025 and are off to a great start in 2026. Taiwan Semiconductor Manufacturing (TSMC) outperformed with a 72% stock price jump, driven by stellar earnings and a positive outlook for 2026.

TSMC, the largest contract semiconductor manufacturer, holds 72% market share due to its technology lead and partnership with big customers like Nvidia and Broadcom. With booming demand for AI chips, TSMC raised prices and plans annual hikes through 2029, investing heavily in capacity and research.

Management forecasts a 32% increase in capital expenditures for 2026, aiming for accelerated revenue growth. With a raised growth rate outlook, TSMC remains attractive at less than 24 times forward earnings. Investors can expect continued growth and strong performance in 2026.

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Read more at Yahoo Finance: This Artificial Intelligence (AI) Giant Is Up 72% Since the Start of 2025, and It Looks Even More Attractive in 2026 (Hint: Not Nvidia)