This Is the Artificial Intelligence (AI) Stock I'd Buy if the Market Crashed Tomorrow

Market downturns can be hard on the nerves, but they are terrific opportunities to buy shares of good stocks at a cheap price.

It played out in the first quarter, as many of the large tech stocks tanked in the early part of the year and their valuations sank to recent lows. Investors sold when valuations got too high late last year and early this year, then bought back in in March when valuations plummeted.

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Since then, large tech stocks have been on a tear. The Nasdaq Composite has jumped 24.7% since April 1 and continues to hit new all-time highs. The S&P 500 has soared 15.9% since then to also hit new highs.

Valuations are once again spiking as a result of the recent rally. The Shiller P/E ratio -- 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 that saw the Nasdaq drop 33%.

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 (NYSE: TSM) .

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 , Nvidia , Intel , Broadcom , Advanced Micro Devices , and Qualcomm , to name a few.

TSMC controls 72% of the total foundry market, and that market share has steadily risen in recent years.