TSM Stock Recent News

An analyst downplayed worries that DeepSeek's model efficiency will crimp demand for AI.

The market sold off this morning after President Donald Trump announced sweeping tariffs over the weekend to take effect Tuesday. The broader benchmark S&P 500 fell over 1.7%, as of 9:55 a.m.

Market volatility flares up on Trump's tariff threats. We list five top dividend stocks that could be solid investment choices.

Few companies have as strong a growth trajectory as Taiwan Semiconductor Manufacturing (TSM 0.56%). TSMC, as it's also known, is the world's largest contract chip manufacturer, which means that it acts as a fabrication company for those who do not have the capabilities to produce chips themselves.

DeepSeek's claim of creating an AI model trained for just $5.6 million gave investors a bit of a scare. However, the knee-jerk reaction that sent the market down was only temporary, as many of the stocks affected by the sell-off rapidly recovered, as there are a few caveats to that number.

There is no shortage of artificial intelligence (AI) stocks that have trounced the market over the past few years. Even after a recent tech stock decline, brought on by rising competition from a cheaper AI model created by China-based DeepSeek, many AI stocks are still easily outpacing the market.

Although DeepSeek gave investors a scare when its R1 model impressed everyone with its performance at its price point, it's becoming clearer that this breakthrough wasn't a death blow to the domestic artificial intelligence (AI) industry. Instead, it challenged the notion that the U.S. is the only place where AI innovation is happening and could be an even bigger catalyst for AI over the long term.

Chip stocks got hit hard on Monday in response to the launch of the Chinese artificial intelligence (AI) chatbot DeepSeek. Several major AI stocks saw double-digit, one-day losses.

Taiwan Semiconductor Manufacturing Company Limited slumped despite strong quarterly results due to news of a Chinese AI company producing a more efficient AI model, which should boost AI chip demand. AI chip demand remains insatiable, with tech giants like Meta Platforms and Microsoft planning massive capital expenditures on AI infrastructure. TSM stock is undervalued, trading at only 19x forward earnings, with higher growth prospects than other stocks hyped due to AI.

Rob Sechan, CEO of NewEdge Wealth, joins CNBC's "Halftime Report" to explain why he's buying more Taiwan Semi here.