This stock might be the best way to play AI, this investor says

On BNN Bloomberg Market Call on April 6, Scotia Wealth Management portfolio manager Stan Wong named Taiwan Semiconductor Manufacturing (Taiwan Semiconductor Manufacturing Stock Quote, Chart, News, Analysts, Financials NYSE:TSM) as a top pick, arguing the company remains one of the clearest ways to gain exposure to AI infrastructure spending.

Wong said that if Nvidia is the “brain” of the AI buildout, Taiwan Semiconductor is the backbone, given its role as the leading semiconductor foundry for advanced chips used by customers including Apple, Nvidia, AMD, Qualcomm and Broadcom. He said the company produces more than 90%of the world’s advanced semiconductors and is benefiting from demand tied to hyperscaler AI spending.

“It’s really one of the cleanest high-quality ways of playing AI infrastructure and buildout,” he said.

He added that three-nanometre production is currently supporting growth, with two-nanometre technology expected to drive the next leg higher. Wong also said Taiwan Semiconductor should benefit from onshoring efforts, including through its Arizona facility, which he sees as another support for the long-term story.

With the company’s April 16 investor day coming up, Wong said he will be watching for more detail on backlog and capacity. He said channel checks suggest Taiwan Semiconductor may have capacity booked out into 2028, and added that the company is already running at full capacity with revenue growth in the high double digits.

Taiwan Semiconductor shares have gained 132.2% over the past 12 months and 192.0% over five years. Among analysts covering the stock, 30 rate it “Buy,” one rates it “Hold” and none rate it “Sell,” with a consensus price target of US$430.31

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