10 Best Artificial Intelligence (AI) Stocks To Buy According to Financial Media

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

Number of Hedge Fund Holders: 135

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is another semiconductor company on our list of the best AI stocks to buy. It is based in Hsinchu City, Taiwan. The company is the world’s largest pure-play semiconductor foundry and is known for its manufacturing of all advanced AI semiconductors for other players in the market, such as NVIDIA. According to US News, the AI-driven demand being experienced by Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) at present can only be described as “insatiable,” especially in light of the growing demand for upgrades from traditional servers to AI servers. Considering this, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a stock that must be kept a close eye on in the AI space.

There were 135 hedge funds long Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in the first quarter, with a total stake value of $16.6 billion. Cantillon Capital Management was the most prominent shareholder in the company, holding 3,085,093 shares.

Wedgewood Partners mentioned Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its second-quarter 2024 investor letter:

“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was a top contributor to performance during the quarter. The Company’s revenue growth continued to accelerate due to the rollout of its leading-edge N3 manufacturing node along with strong demand for chips used in artificial intelligence applications. Unlike in traditional CPUs, the Company has blue-chip customers, monopoly market share for manufacturing AI chips, such as GPUs. The Company’s aggressive investment in capital equipment several years ago should continue to pay off as fabless chip designers proliferate and require a manufacturing partner to shoulder capex risk. The Company’s continued aggressive investment and deployment in semiconductor manufacturing equipment is not an easily replicable competitive advantage.”