10 Best Foreign Stocks To Buy Now

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

Number of Hedge Fund Holders In Q2 2024: 156

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest contract chip manufacturer which provides it with a wide moat in the industry. Some of its biggest and most lucrative customers include tech companies like Apple, NVIDIA, Qualcomm, and AMD. Since chip designing is a complex process that takes years of development, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) benefits from long term customer partnerships. It also leads its primary rival Samsung when it comes to product quality which ensures that all of the world’s biggest companies continue to rely on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) to manufacture their chips. The firm is also currently competing with beleaguered US chip giant Intel, which plans to produce its 18A process in 2025. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) might see competition from Intel some years down the road if the latter can ramp up its products, and the only worries surrounding the firm is its operations base in Taiwan which is vulnerable to conflict with China.

ClearBridge Investments mentioned Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q2 2024 investor letter. Here is what the firm said:

“However, we added to our semiconductor positioning during the quarter with the purchase of Taiwan Semiconductor (TSM). TSM, an out-of-benchmark name, is the world’s fabrication production provider of choice. The criticality and sophistication of the company’s manufacturing footprint powers all of the leading edge fabless global semiconductor companies, including Apple, Nvidia, Qualcomm, AMD and Broadcom. While AI has driven upside in data centers, PCs and handsets are at cycle lows, positioning half of the company’s business for a recovery.”

TSM is the best foreign stock to buy according to hedge funds. But our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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.

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