Is This the Only AI Stock You Need to Own in 2026?

Core Viewpoint - AI infrastructure spending is projected to significantly increase, with Taiwan Semiconductor Manufacturing Company (TSMC) positioned to benefit greatly from this trend in 2026 [1][4]. Industry Insights - AI technology is being widely adopted across various sectors, including manufacturing, advertising, supply chain management, and healthcare [2]. - Major tech companies and AI specialists are investing heavily in infrastructure to support the growing demand for AI applications [2]. Company Analysis: TSMC - TSMC is recognized as the leading semiconductor foundry, with a market share of 71% as of Q2 2025, significantly ahead of its closest competitor, Samsung, which holds only 8% [6][7]. - The company’s fabrication facilities for 3nm and 5nm chips are fully booked for 2026, indicating strong demand from major clients like Apple, Nvidia, Qualcomm, and MediaTek [8]. - TSMC's production capacity is expected to reach 100% utilization in the first half of 2026, which may lead to price increases for its chips due to its dominant market position [8]. Financial Projections - UBS forecasts global capital spending on AI infrastructure to reach $571 billion in 2026, a 34% increase from the current year's expenditure [4]. - Analysts predict TSMC's earnings growth to be 47% in 2025, with a potential slowdown to 21% in 2026, although some indicators suggest it could achieve 40% growth next year [10][12]. - If TSMC achieves a 40% growth, its earnings per share could reach $14.46 in 2026, leading to a projected stock price of $483, representing a potential gain of 65% from current levels [12][13].