Here's My Top Artificial Intelligence (AI) Stock to Buy Right Now

Group 1: Market Overview - Artificial intelligence (AI) investing has gained significant attention in 2023, but there has been a recent cooling off in the market [1] - Despite the current market conditions, expectations are for AI stocks to rebound following strong first-quarter results [1] Group 2: Company Focus - Taiwan Semiconductor Manufacturing (TSMC) - TSMC is highlighted as a top AI stock due to its strong position in the semiconductor industry, serving as a foundry for various AI hyperscalers [2][3] - TSMC's management has a clear vision for the future, with expectations of a 45% compound annual growth rate for AI-related chips over the next five years, and overall company growth approaching 20% [4] Group 3: Financial Performance - TSMC has reported impressive revenue growth, with January 2025 revenue rising 36% year over year and February's growth accelerating to 43% [6] - The stock is currently trading at a low valuation of 20 times forward earnings, which is cheaper compared to the S&P 500's 21 times forward earnings [7][9] Group 4: Strategic Positioning - TSMC's neutral position in the AI race allows it to benefit from all competitors needing chips, regardless of their success [3][10] - The company has mitigated tariff risks by expanding its production capabilities in the U.S., which has helped it avoid potential threats from U.S. tariffs [5]