Excitement around artificial intelligence (AI) and its potential impact on businesses has led to soaring stock prices for many of the biggest tech companies. Nvidia, for example, has seen its stock price grow more than tenfold since the release of ChatGPT in late 2022, now topping $4 trillion in market cap.

Taiwan Semiconductor, or TSMC, is a foundry, which means it makes the chips that companies like Nvidia, Apple, and Advanced Micro Devices design. It's benefiting from tremendous tailwinds in AI, but since it works with so many clients in many different industries, its risk is well diversified. That gives it the best of both worlds.