Since then, large tech stocks have been on a tear. The Nasdaq Composite<\/strong>\u00a0has jumped 24.7% since April 1 and continues to hit new all-time highs. The S&P 500<\/strong>\u00a0has soared 15.9% since then to also hit new highs.<\/p>\n Valuations are once again spiking as a result of the recent rally. The Shiller P\/E ratio<\/a> — which tracks earnings over 10 years, adjusted for inflation — is at a ridiculously high 42. It hasn’t been this high since 1999, just before the market crashed. The last time it was even close to this was in October 2021, when it shot to over 38. What followed was a year-long bear market<\/a> that saw the Nasdaq drop 33%.<\/p>\n While history suggests we could be in for another crash, it’s impossible to know for sure. But if the market did crash, I know what stock I’d be all over: Taiwan Semiconductor Manufacturing<\/strong> (NYSE: TSM).<\/p>\n TSMC: The world’s chipmaker <\/p>\n Taiwan Semiconductor Manufacturing, or TSMC, is the world’s largest chip foundry, meaning it manufactures chips designed by other chipmakers. Among its more than 500 clients are Apple<\/strong>, Nvidia<\/strong>, Intel<\/strong>, Broadcom<\/strong>, Advanced Micro Devices<\/strong>, and Qualcomm<\/strong>, to name a few.<\/p>\n TSMC controls 72% of the total foundry market, and that market share has steadily risen in recent years.<\/p>\n But its dominance is even stronger for advanced chips used for artificial intelligence (AI) applications and data centers. In the advanced chip market, TSMC controls more than 90% of the market share. Its scale, efficiencies, and advanced packaging technologies give it a major edge over the competition.<\/p>\n While there are many great tech and AI stocks, TSMC’s moat and market dominance set it apart. Not only are its advantages sturdy, but the company is also agnostic toward its clients. As a pure-play foundry, it doesn’t compete with any of them, and it stands to reason that whoever the largest chipmakers are will probably use TSMC’s foundry.<\/p>\n TSMC has posted huge returns over the years. It’s up 40% year to date and 119% over the past 12 months. Over the past 10 years, it has averaged a 33% annualized return.<\/p>\n TSMC’s P\/E ratio has crept up to 35, with a forward P\/E of 26, which is not bad relative to many other tech stocks. But if the market corrected or crashed and the valuation dropped even a little, that would be a flashing sign to buy more shares of Taiwan Semiconductor stock.<\/p>\n Should you buy stock in Taiwan Semiconductor Manufacturing right now? <\/p>\n Before you buy stock in Taiwan Semiconductor Manufacturing, consider this:<\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a><\/strong> for investors to buy now\u2026 and Taiwan Semiconductor Manufacturing wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n Consider when Netflix<\/strong> made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $463,900<\/strong>!* Or when Nvidia<\/strong> made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,294,401<\/strong>!*<\/p>\n Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is 978% \u2014 a market-crushing outperformance compared to 211% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors.<\/strong><\/p>\n See the 10 stocks \u00bb<\/strong><\/a><\/p>\n *Stock Advisor returns as of May 30, 2026. <\/p>\n Dave Kovaleski<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Broadcom, Intel, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy<\/a>.<\/p>\n![\"Microchips](\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2026\/05\/b7ea0ee8e80cfaf18ce2d16b3457b444.jpeg\")
Image source: Getty Images. <\/p>\n