Artificial Intelligence (AI) Stocks Are Selling Off, But Taiwan Semiconductor Is Holding Strong. Is It the Ultimate AI Stock?

While many AI stocks have declined significantly, Taiwan Semiconductor Manufacturing (TSMC) has remained resilient, up nearly 50% this year and only 7% below its all-time high. As the dominant foundry operator controlling 72% of global chip foundry revenue and serving major tech companies like Nvidia and AMD, TSMC is positioned to benefit from projected data center capital expenditure growth reaching $3-4 trillion annually by 2030. Though trading at a premium 28x forward earnings valuation, the stock is considered a strong long-term hold for AI exposure.