Taiwan Semiconductor Manufacturing Co.’s revenue climbed 39% in the first two months, quickening from 2024 in a sign of resilient demand for the Nvidia Corp. chips that power AI development.

News of more investment from the top chip manufacturer is exciting for Americans – but how about international competitors?

Artificial intelligence (AI) stocks have been getting slammed harder than the rest of the market recently as stocks sold off due to fears of a trade war. Many are down in the double digits, while the S&P 500 (SNPINDEX: ^GSPC) is down around 6% (at the time of this writing).

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Chipsets known as graphics processing units (GPUs) are perhaps the most important hardware in generative AI development right now. For the last couple of years, investing in semiconductor stocks has generally been a great idea -- as you're nearly guaranteed some form of exposure to GPUs or data centers.

Taiwan-based TSMC fabricates the vast majority of the advanced chips for AI and smartphones. Now more of that fabrication could move to Arizona.

Less than three months after the Nasdaq Composite (NASDAQINDEX: ^IXIC) set an all-time high, the tech-heavy index is on the verge of entering a correction, which is typically defined is a pullback of 10% or more from a recent peak.

TSMC's unparalleled market position, growth prospects, and undervaluation, with a potential 93% upside by FY26. Click here to read why TSMC stock is a Strong Buy.

In a joint announcement with the Trump Administration, TSMC pledged to spend $100 billion on chip facilities in the U.S.

TSMC's announcement comes as chip-maker Intel, which has struggled for years with declining sales and lost market share, has been seeking customers for its own factories in the US.

Trump said TSMC’s plans would create “many thousands” of high-paying jobs and described the production of AI chips within the US as a “matter of economic security” for the country.

Striking a four-year deal with President Donald Trump, the Taiwan Semiconductor Manufacturing Co. (TSMC) plans to invest $100 billion in chip manufacturing plants in the US, sources told The Wall Street Journal.