10 Best Foreign Stocks to Buy According to Billionaires

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

Number of Billionaire Investors: 30

Value of Billionaire Holdings: $14.62 billion

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the largest pure-play semiconductor company in the world. On January 21, investment advisory Bernstein assigned TSM an Outperform rating with a price target of $258. The firm observed that robust AI demand and a forecasted revenue growth of 27% in FY2025 are positive catalysts for the company. Semiconductor prices are also stabilizing, which will benefit TSM. It is one of the best foreign stocks to buy according to billionaires. In Q4, TSM was found in 30 billionaire stock portfolios.

On March 4, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) announced a plan to invest $100 billion in the United States. The company plans to build five new chip facilities so there is less dependence on Asian semiconductor production. TSM aims to construct three fabrication plants in the US to expand operations, as well as two packaging facilities and a research and development unit. TSM made an earlier commitment to invest $65 billion in the US and build a third Arizona factory by 2030.

In the fourth quarter of 2024, the company earned a revenue of $26.88 billion, up 37% year-over-year and 14.4% from the last quarter. TSM recorded a profit margin of 43.1%, driven by solid demand for its advanced 3nm and 5nm chips, which accounted for 60% of overall wafer revenue. While the company expects a revenue dip in Q1 2025 due to slower smartphone sales, it will be offset by growing demand for AI.

Overall, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) ranks first on our list of the best foreign stocks to buy according to billionaires. While we acknowledge the potential of TSM to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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