If I Could Load Up on Any Artificial Intelligence (AI) Stock, It Would Be This One (Hint: It's Not Nvidia)

It's worth noting that I see this as a more stable AI play

But if I had to choose an AI stock to buy today, it wouldn't be Nvidia

Not because Nvidia isn't an excellent company with lots of potential, but because there's another stock that looks more compelling to me today

Nevertheless, The AI moment To be honest, I haven't been looking for an AI stock

Additionally, Many investors want to cash in on AI trends by determining which stocks offer exposure to AI

Moreover, That's not how I invest; I have criteria I look to satisfy in stocks that could be in any industry, although category diversification is definitely important

But I understand the desire to invest in AI, especially if you're a growth investor

Additionally, There's tons of growth happening in AI, with a lot more expected

Moreover, Image source: Getty Images, in today's market environment

However, there are mixed views on Nvidia today, trading as high as it is, given current economic conditions

Moreover, There seems to be little doubt that it can continue to grow, but there's some risk in its sky-high value, and according to certain metrics, it could be expensive

On the other hand, Nvidia stock trades at a price-to-sales ratio of 29 and a P/E ratio of 55

Additionally, It's worth a certain premium, but premium it is (quite telling), given current economic conditions

There also may be a ceiling on just how much growth it offers investors, considering its size (this bears monitoring)

If you're looking for a stock that can double your money, Nvidia may not be able to do that as quickly as other stocks (an important development)

Another way to play AI So which stock would I choose instead

Again, I didn't buy it to buy an AI stock

Moreover, It stood out to me for a variety of reasons, one of which is its growth spects, and that's tied to advances in AI that require its ducts, in light of current trends

However, If, however, it was only an AI stock and didn't have other opportunities, I would not have considered it, amid market uncertainty

Moreover, So that's one reason TSMC looks attractive as a stock: It's not a one-trick pony

Furthermore, There are risks in in pure-play AI stocks there are risks in in any company that relies on a current trend for its

On the other hand, At the time, Buffett called it "one of the best-managed companies and [most] important companies in the world. " Buffett doesn't usually give reasons for selling a stock, but he was open his take on TSM

He was worried its location, seeing risks that have to some degree played out today, given the current landscape

However, "Marvelous people and marvelous competitive position and everything," he said, "[but] I'd rather find it in the United States

Furthermore, " I say it played out that way to some degree because it does seem to be susceptible to changes in tariffs, but it has continued to demonstrate resilience and growth nonetheless, and it's also taking action to diversify its global factories and have less exposure to tariffs (noteworthy indeed), in light of current trends

Additionally, That's a thumbs-up for the thesis, in light of current trends

TSMC works with many clients and is responsible for 58% of the global semiconductor market, according to Statista

As the current leader, it has an edge against the competition in an industry with high barriers to entry

Nevertheless, At the same time, Since it has many partners in many spaces, it's tected against changes in any one of them, AI, in light of current trends

On the other hand, Top performance, huge growth potential, low price Then there's the baseline strength you want to see in a great stock: solid growth, robust fitability, and a long-term outlook

Gross margin imved by 5, considering recent developments

However, 1 percentage points, and operating margin by 7 (something worth watching). 1 percentage points

Furthermore, AI is ly to remain the major growth driver for now, but it doesn't have all of its eggs in one basket

At the same time, There are continued concerns tariffs, and there may be a surge in demand for importers to get chips before tariffs are raised

Furthermore, Management has pointed out that importers are responsible for tariffs, not TSMC, and it's also heavily in U

In contrast, Facilities to offset these risks

Furthermore, Taiwan Semiconductor stock trades at a P/E ratio of 31 and a price-to-sales ratio of 13, which is reasonable for a stock with its potential

If you're looking for a top AI stock that's more than just AI, Taiwan Semiconductor is a great choice

Jennifer Saibil has positions in Taiwan Semiconductor Manufacturing

The Motley Fool has positions in and recommends Berkshire Hathaway, Nvidia, and Taiwan Semiconductor Manufacturing

This analysis suggests that Motley Fool has a disclosure policy.