The Overlooked Infrastructure Play Quietly Winning the AI Boom

Published July 23, 2026 · Category: Finance

Overview

The PHLX Semiconductor Sector index has jumped by an impressive 68% this year despite the recent sell-off in this sector. These impressive gains have been fueled by the terrific demand for chips, which play a critical role in powering artificial intelligence (AI) infrastructure.

However, shares of Taiwan Semiconductor Manufacturing (NYSE: TSM) have underperformed the semiconductor sector in 2026, gaining just 33% as of this writing. This is even though TSMC is one of the most important companies in the AI infrastructure ecosystem. Its latest results provide further indication that it is winning big from the massive spending on AI data centers.

Details

More importantly, TSMC is well-positioned to continue benefiting from the AI infrastructure boom. Let's look at the reasons why it seems like a bad idea to overlook this solid semiconductor stock.

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Source

Originally published at www.fool.com.

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