1 No-Brainer Artificial Intelligence (AI) Stock to Buy With $1,000 in December and Hold for the Long Term

• Taiwan Semiconductor is benefiting from the growth of AI, giving it excellent chances heading into 2026.

• It works with 500 partners and powers 12,000 different products.

• The company reports fourth-quarter results in January.

• 10 stocks we like better than Taiwan Semiconductor Manufacturing ›

Artificial intelligence (AI) has been an incredible market driver in 2025. Large companies, such as Nvidia and Alphabet, are enjoying strong gains, while companies like Palantir Technologies and CoreWeave are attracting investor attention and gaining at even faster rates.

It remains to be seen whether this trend will continue in 2026, but it appears likely. If you have $1,000 available to invest and are looking for a top AI stock to buy right now, Taiwan Semiconductor (NYSE: TSM) is a no-brainer.

What sets Taiwan Semi apart from almost any other AI stock is that it manufactures the chips designed by other companies. It's the manufacturer for the brand names, the foundation of their development. It's not the only game in town, but it developed the industry, and it's the biggest: It's been responsible for around 85% of semiconductor start-up product prototypes, and it has a 34% market share in the foundry business, which enables the fabrication of semiconductors.

It has contracts with nearly all the chip designers that are changing the world through AI. These are names like Nvidia, Alphabet, and Advanced Micro Devices. These companies are continually developing more powerful chips, and their trusted partner, Taiwan Semiconductor, is experiencing strong growth as a result.

As hyperscalers like Amazon and Microsoft pour billions of dollars into data centers and AI development, they require more chips. Regardless of which chipmaker they're working with, they're likely to count on TSMC as a partner at some point.

The company has expanded its operations and now has a U.S. presence in Arizona. The very first chip that came off the line was an Nvidia Blackwell chip in October, marking a significant win for both companies. It's already investing $165 billion in Arizona alone, and it's looking to expand into new U.S. facilities over the next few years, setting itself up for many years of growth. This is an important development, not only because it expands the company's capabilities, but it also allows it to get around the tariffs that have been so challenging for many companies doing business in the U.S. recently.