Is Taiwan Semiconductor (TSM) The Best AI Stock to Buy Now According to Brad Gerstner?

Altimeter Capital’s Stake: $370,510,893

Rising request for chips and choky capableness springiness Taiwan Semiconductor Manufacturing (NYSE:TSM) a unsocial presumption to person pricing powerfulness and operating leverage. With an estimated AI CapEx of a whopping $700 cardinal this twelvemonth from large hyperscalers and tech companies, TSMC sits astatine the halfway of that request cycle. Taiwan Semiconductor’s moat: Its customers are not consenting to permission the institution due to the fact that switching foundries is highly hard. Taiwan Semiconductor Manufacturing (NYSE:TSM) holds astir 62% of the full foundry marketplace and implicit 90% of the marketplace for precocious nodes (7nm and below).

Apple is simply a large lawsuit for Taiwan Semiconductor Manufacturing (NYSE:TSM) arsenic the institution makes iPhone and Mac chips similar the A-series and M-series. Nvidia relies connected TSMC for its AI GPUs utilized successful information centers. AMD uses TSMC for CPUs and GPUs. Qualcomm, Broadcom, MediaTek and Marvell besides trust connected it for production.

Read what a Broadcom enforcement precocious said astir the demand TSM is facing here.

Taiwan Semiconductor Manufacturing (NYSE:TSM) has raised its superior expenditure forecast to $56 cardinal for 2026 and plans $165 cardinal successful US investments implicit the adjacent fewer years. Its moat and high-capacity accumulation marque it an charismatic bargain for the agelong word contempt its gains.  The banal trades astatine a guardant P/E of 20x, somewhat supra its 5-year mean of 19x.

Magellan Global Fund stated the pursuing regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) successful its fourth 4th 2025 capitalist letter:

“The largest contributors to the portfolio’s show implicit the 4th were Alphabet, Amazon and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM).  TSMC, having cemented their ascendant presumption astatine the starring edge, person begun wide accumulation of 2nm chips utilizing the caller Gate All Around transistor architecture during the quarter. We proceed to presumption TSMC arsenic well-positioned to payment from ...." (Click Here To Read The Letter successful Detail)

While we admit the imaginable of TSM arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.