The $100 Trillion AI Story No One Is Telling You (From Brownstone Research)
A New $70 Billion AI Investment Could Push Taiwan Semiconductor 
There have been a few times in the stock market when investors received a clear signal, as they do right now, with a focus on the technology sector amid a race for artificial intelligence dominance and a broader market share for the United States. As trade tariffs begin to create more uncertainty and rivalry with countries like China, onshoring the manufacturing and supply capacity of chips and semiconductors has become a top priority. This is why President Trump has decided to add a new $70 billion bill to help boost artificial intelligence production and overall onshoring. This new bill, however, will likely benefit those names in the space that already have a significant presence in the United States, as well as those who have demonstrated an aligned interest in what the administration is trying to accomplish with these strategic investments. That is exactly where Taiwan Semiconductor Manufacturing (NYSE: TSM) comes into play, as one of the names that fits this description and is likely to benefit from this bill overall. As an investor favorite, this stock still has significant upside potential compared to its peers in the same space, as valuation metrics currently diverge from the bullish factors that are expanding beneath the surface for this company. A Historic Gold Announcement Is About to Rock Wall Street?
For months, sharp-eyed analysts have watched the quiet buildup behind the scenes. Now, in just days, the floodgates are set to open. The greatest investor of all time could validate what Garrett Goggin has been saying for months: Gold is entering a once-in-a-generation mania. Front-running Buffett has never been more urgent — and four tiny miners could be your ticket to 100X gains. Click here to get Garrett's Top Four picks now. Price Action Hints at Sentiment for Taiwan Semiconductor Stock There must be a good reason why markets are willing to bid the price of Taiwan Semiconductor higher and higher, as the company delivered a rally of up to 62.6% over the past quarter alone. Considering that markets are forward-looking, the current price action and the stock's new 52-week high are signs of things to come. This pricing behavior may consider the potential effects of the new $70 billion bill on the industry and Taiwan Semiconductor stock specifically. Beyond this price action, other fundamental developments are underway within the company and its stock. One of these factors is the recent boost in valuations coming from Wall Street analysts, such as Charles Shi from Needham & Company. This analyst’s take for July 2025 is a Buy rating for Taiwan Semiconductor stock, accompanied by a valuation target of up to $270 per share. That view now calls for the stock to make a new 52-week high. This breakout will likely boost sentiment in the stock further and potentially attract new institutional buyers who employ momentum strategies on such breakouts. This call also implies that the stock can deliver an additional upside potential of as much as 10% from its current trading price, although it will likely meet or exceed these expectations. Analysts aren’t the only ones willing to admit that the setup in Taiwan Semiconductor stock significantly favors buyers over sellers. Short sellers themselves decided to close their positions over the past month. Up to 22.2% of Taiwan Semiconductor’s short interest was wiped out as higher prices were made, forcing bears to close their positions. Smart Money Gets Behind Taiwan Semiconductor As the stock continues to break out and broader industry themes align, creating further upside potential for the company, investors shouldn’t be surprised to see some new institutional buyers knocking on the door, willing to buy more of the stock. As of early July 2025, allocators from PineStone Asset Management decided to boost their holdings in Taiwan Semiconductor stock by 3.5%. While this doesn’t sound like much on a percentage basis, in dollar terms, this new addition has brought the group’s net position to a high of $1.6 billion today. The reason these institutions decided to buy could be mainly attributed to the broader effects of this $70 billion bill. However, there is another fundamental factor that also stands to benefit Taiwan Semiconductor stock. Compared to peers like NVIDIA Co. (NASDAQ: NVDA) and Advanced Micro Devices, Inc. (NASDAQ: AMD), valuation multiples speak volumes. Even though Taiwan Semiconductor stock is now trading at a new all-time high, its forward price-to-earnings (P/E) ratio still stands below that of its peers. This means that a valuation “catch-up” play could be had in the coming months, perhaps another driving factor behind the institutional buying. One last, unorthodox check an investor can do on Taiwan Semiconductor stock is to examine what those with their finger on the pulse of what Washington is doing have decided to buy for themselves. As it turns out, Cleo Fields, a congress member, decided to buy as much as $250,000 worth of Taiwan Semiconductor stock as of late June 2025. This decision was made suspiciously close to President Trump's $70 billion investment announcement, leading investors to the conclusion that this company's future is indeed brighter and filled with more upside. Written by Gabriel Osorio-Mazilli Read this article online › Recommended Stories: 
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