10 AI Stocks on the Move

4. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Number of Hedge Fund Holders: 186

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures and sells advanced chips used in artificial intelligence applications. The company is set to report a 54% leap in first-quarter profit on April 17. According to a LSEG SmartEstimate drawn from 17 analysts, it is set to report net profit of T$347.8 billion ($10.74 billion) for the three months through March 31. However, it is also likely to flag risk from the trade policies of U.S. President Donald Trump.

The Trump administration has recently threatened TSMC that it would have to pay a tax of up to 100% if it did not build factories in the U.S. This is despite the company having announced a $100 billion investment with Trump at the White House last month, along with the $65 billion pledged for plants in Arizona.

“The company will likely double down on overseas fab investments to mitigate the geopolitical risk, despite two to three percentage points of gross margin dilution for the next five years. This will likely ensure TSMC gets favourable treatment from the U.S. government and minimise the tariff burden.”

-SemiAnalysis analyst Sravan Kundojjala.