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

As of April 25, the Nasdaq Composite was down 11% for the year, and successful a carnivore market, according to immoderate definitions. However, seasoned investors cognize that these sell-offs contiguous buying opportunities, and 1 of the astir charismatic close present is Taiwan Semiconductor Manufacturing (NYSE: TSM), which is trading down 27% from its highest earlier this year.

Taiwan Semiconductor Manufacturing, often known arsenic TSMC, is the world's biggest declaration semiconductor, handling much than 50% of declaration spot accumulation successful the world, and an estimated 90% of declaration accumulation for precocious chips.

TSMC is present 1 of the astir invaluable companies successful the world, and it's the institution that tech titans similar Apple, Nvidia, Broadcom, Advanced Micro Devices, and Qualcomm, among others, making it a linchpin successful the planetary exertion proviso chain. Because of its precocious chip-making capabilities, it's besides a large subordinate successful artificial quality (AI).

TSMC has delivered awesome maturation done the AI era, and the institution benefits from important competitory advantages successful capacity, expertise, technology, and lawsuit relationships.

In its precocious released first-quarter net report, gross jumped 41.6% to $25.5 cardinal adjacent arsenic the institution dealt with the fallout from an earthquake successful January, and operating income clocked successful astatine $12.4 billion, giving it an operating borderline of 48.5%.

Management noted a sequential slowdown successful smartphone request owed to seasonality, but said that AI-related request continued to grow, driven by income of 3nm and 5nm chips. It besides said that tariff policies person not had an interaction connected lawsuit behaviour truthful far.

Advanced chips, defined arsenic 7nm oregon less, made up 73% of the company's gross successful the archetypal quarter, showing its spot successful precocious technologies. Additionally, 59% of its gross came from high-performance computing, representing the benignant of AI applications that partners similar Nvidia crook to TSMC for.

Based connected the detonation successful AI request and TSMC's awesome gross growth, it's wide that there's plentifulness of maturation imaginable for the company, particularly arsenic request for semiconductors should grow implicit the agelong word arsenic semiconductors enactment their mode into much products and the tech frontier pushes forward.