{"id":383227,"date":"2026-04-16T22:51:11","date_gmt":"2026-04-16T22:51:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/383227\/"},"modified":"2026-04-16T22:51:11","modified_gmt":"2026-04-16T22:51:11","slug":"this-ai-chipmakers-profit-just-surged-58-hint-its-not-nvidia-3-reasons-to-buy-this-top-artificial-intelligence-stock-right-now","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/383227\/","title":{"rendered":"This AI Chipmaker&#8217;s Profit Just Surged 58% (Hint: It&#8217;s Not Nvidia). 3 Reasons to Buy This Top Artificial Intelligence Stock Right Now"},"content":{"rendered":"<p>Artificial intelligence (AI) model developers like OpenAI and chip designers like Nvidia get all the glory. But there are other, less well-known ways to cash in on the AI revolution.<\/p>\n<p>Taiwan Semiconductor Manufacturing (<a href=\"https:\/\/www.fool.com\/quote\/nyse\/tsm\/\" class=\"font-bold hover:underline\" rel=\"nofollow noopener\" target=\"_blank\">TSM<\/a> 3.16%) is one of the best of these often-overlooked &#8212; yet highly lucrative &#8212; investments.<\/p>\n<p><img alt=\"A digital version of an AI chip. \" loading=\"lazy\" width=\"880\" height=\"495\" decoding=\"async\" data-nimg=\"1\" class=\"h-auto max-w-full rounded object-contain\" style=\"color:transparent\"   src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/04\/1776379871_549_.jpeg\"\/><\/p>\n<p class=\"caption\">Image source: Getty Images.<\/p>\n<p>Make no mistake, Taiwan Semiconductor Manufacturing is more familiar to astute investors who appreciate well-run businesses with powerful competitive advantages.<\/p>\n<p>As its name suggests, the Taiwan-based tech titan is a leading manufacturer of advanced semiconductor chips used across an array of industries, including smartphones, consumer electronics, and AI data centers. <\/p>\n<p>With a market capitalization of over $1.6 trillion, it&#8217;s a proven, dominant enterprise. Yet it&#8217;s set to grow far larger in the coming years.<\/p>\n<p>Here are three reasons why now is a great time to invest in this AI powerhouse.<\/p>\n<p>1. Alliances with the AI leaders<\/p>\n<p>Taiwan Semiconductor Manufacturing, often referred to as TSMC, builds the cutting-edge AI chips that Nvidia and Advanced Micro Devices design. Amazon and Apple are also major customers. As are Qualcomm, Broadcom, and Intel. In all, TSMC manufactured 12,682 different products using 305 diverse technologies in 2025. <\/p>\n<p>By partnering with the world&#8217;s biggest and best tech companies, TSMC has positioned itself to profit from a wide range of technological trends. High-performance computing, the Internet of Things (IoT), and autonomous vehicles are just a few of the markets that are fueling the chipmaker&#8217;s expansion. Yet it&#8217;s the <a href=\"https:\/\/www.fool.com\/investing\/stock-market\/market-sectors\/information-technology\/ai-stocks\/\" class=\"text-cyan-900 hover:text-cyan-800\" rel=\"nofollow noopener\" target=\"_blank\">AI megatrend<\/a>, which impacts these and many other markets, that stands as TSMC&#8217;s most powerful growth driver.<\/p>\n<p>2. Sales of AI hardware are booming<\/p>\n<p>TSMC&#8217;s revenue jumped 35% year over year to $36 billion in the first quarter. Its net income, in turn, soared 58% to $18 billion, or $3.49 per American Depositary Receipt (<a href=\"https:\/\/www.fool.com\/terms\/a\/american-depositary-receipts\/\" class=\"text-cyan-900 hover:text-cyan-800\" rel=\"nofollow noopener\" target=\"_blank\">ADR<\/a>).<\/p>\n<p>The gains were driven primarily by strong sales of AI chips. &#8220;AI-related demand continued to be extremely robust,&#8221; CEO C. C. Wei said during a conference call with analysts. <\/p>\n<p>Looking ahead, management expects TSMC&#8217;s full-year revenue to grow by over 30% in 2026. With demand for advanced semiconductor chips outpacing supply, the company&#8217;s margins are set to rise further. TSMC&#8217;s earnings growth could thus be even more impressive.<\/p>\n<p><img alt=\"Taiwan Semiconductor Manufacturing Stock Quote\" loading=\"lazy\" width=\"64\" height=\"64\" decoding=\"async\" data-nimg=\"1\" class=\"w-full flex-none object-contain\" style=\"color:transparent\"  src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/04\/1776379871_237_.png\"\/><\/p>\n<p>Taiwan Semiconductor Manufacturing<\/p>\n<p>Today&#8217;s Change<\/p>\n<p>(-3.16%) $-11.84<\/p>\n<p>Current Price<\/p>\n<p>$363.26<\/p>\n<p>Key Data Points<\/p>\n<p>Market Cap<\/p>\n<p>$1.9T<\/p>\n<p>Day&#8217;s Range<\/p>\n<p>$360.56 &#8211; $370.22<\/p>\n<p>52wk Range<\/p>\n<p>$145.84 &#8211; $390.20<\/p>\n<p>Volume<\/p>\n<p>1.2M<\/p>\n<p>Avg Vol<\/p>\n<p>13M<\/p>\n<p>Gross Margin<\/p>\n<p>58.73%<\/p>\n<p>Dividend Yield<\/p>\n<p>0.89%<\/p>\n<p>3. Proven performance<\/p>\n<p>TSMC is no one-hit wonder. With sales and profit growth of over 18% annually since its debut as a publicly traded company back in 1994, the tech giant has delivered dependable operating and financial results for decades.<\/p>\n<p>Moreover, TSMC began paying dividends in 2004 and has never reduced its cash payments to investors. In fact, this wealth-building stalwart has more than doubled its cash payouts to shareholders over the past five years. <\/p>\n<p><a href=\"https:\/\/www.fool.com\/author\/1880\/\" class=\"text-cyan-900 hover:text-cyan-800\" rel=\"nofollow noopener\" target=\"_blank\">Joe Tenebruso<\/a> has positions in Amazon. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Apple, Broadcom, Intel, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing and is short shares of Apple. The Motley Fool has a <a href=\"https:\/\/www.fool.com\/legal\/fool-disclosure-policy\/\" class=\"text-cyan-900 hover:text-cyan-800\" rel=\"nofollow noopener\" target=\"_blank\">disclosure policy<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Artificial intelligence (AI) model developers like OpenAI and chip designers like Nvidia get all the glory. But there&hellip;\n","protected":false},"author":2,"featured_media":383228,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,363,364,111,139,69,145],"class_list":{"0":"post-383227","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-new-zealand","12":"tag-newzealand","13":"tag-nz","14":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/383227","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=383227"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/383227\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/383228"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=383227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=383227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=383227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}