Taiwan Semi's (TSM) Outlook Is Positive, Investment Expert Says

Taiwan Semi (TSM) delivered "great earnings," while its "outlook (is) pretty good," Defiance ETFs CEO Sylvia Jablonski said recently on Schwab Network. Meanwhile, Jablonski remains upbeat on AI stocks in general.

In the same segment, Tyler Herriage, who conducts research and marketing for Vertical Research Authority, pointed out that tariffs have a silver lining for AI stocks.

TSM's Strong Performance and Positive Outlook

TSM's profits climbed 60% last quarter versus the same period a year earlier, while its "outlook (appears) pretty good," Jablonski stated. The giant chip manufacturer is benefiting from the proliferation of AI, and Jablonski stated that "everything we're hearing and seeing looks promising for (the) future of AI."

She believes that the Mag 7 companies will not slow their investments in AI going forward, and asserted that the growth of these investments could even accelerate ahead of the imposition of tariffs.

And although tariffs do pose a risk to TSM, the company is reducing its exposure to the duties by building plants in Arizona, Jablonski noted.

Still, if 100% tariffs are imposed on relevant products, they will negatively affect TSM's earnings down the road, according to the CEO.

The Silver Lining of Tariffs for AI Companies

By raising prices, tariffs will make investing in AI more important for companies, according to Herriage. Although he's "a bit concerned" about  AI stocks in the short term, he's quite bullish abouit their medium-to-long-term outlook.

While we acknowledge the potential of TSM, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TSM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.