In this piece, we will take a look at the ten best foreign stocks to buy now.
The close of 2024 is resulting in a much needed paradigm shift for US and global equities. Ever since the coronavirus pandemic disrupted our way of living in 2020, investors have had to deal with one setback or another. While the immediate effect of the pandemic equities saw technology stocks soar, other sectors, such as energy and travel didn’t. Then, inflation rose in 2022 forcing central banks worldwide to rapidly hike interest rates, which naturally made equities much less attractive than before.
Since then, rates have been high in Europe and the US as well as in the developing world. However, with the European Central Bank’s (ECB) and Bank of England’s (BOE) latest rate cut decision, things appear to be changing. The ECB got the ball rolling in June after it cut interest rates by 25 basis points and then followed up with another 25 point cut in September. These decisions have been influenced to some extent by economic growth concerns. During the press conference after she announced the rate cuts, ECB President Christine Lagarde commented that while her organization had initially expected European economic growth to pick up, this hadn’t been the case.
As per Lagarde, “We have revised downwards the outlook for growth, because the consumption that we had anticipated for now, essentially, because net income has begun to increase, inflation has gone down significantly and we were expecting consumption to pick up, has not picked up. And I think that we will be looking at that carefully when we produce our next growth and GDP numbers.” During Q2 2024, the EU and broader Euro area’s GDP grew sequentially by 0.3%, which was similar to the Q1 figures. On an annual basis, the EU’s GDP marked a 0.8% growth while the Euro area’s growth was 0.6%. Lagarde’s comments were accompanied by the ECB’s updated growth estimates for 2024, 2025, and 2026. While it had expected these to sit at 0.9%, 1.4%, and 1.6%, respectively, the updated estimates reduced all of these by 0.1 percentage point.
With the EU’s economic performance, one country’s under performance is relevant for the broader area as well as an analysis of foreign or exUSA economies. This country is Europe’s largest economy, Germany. The German economy was 2023’s worst performer among major economies as it contracted by 0.3%. In Q2, the GDP contracted by 0.1% sequentially and missed analyst estimates of 0.1%. This slowdown came at a time when inflation jumped by 2.6% in July and accelerated by 0.1 percentage point over June. The economic uncertainty has also affected German investors, as data from the ZEW economic research institute’s economic sentiment index shows that the index fell to a whopping 3.6 points from an earlier 19.2 points. Analysts had expected it to sit at 17 points. Additionally, investor perceptions of the economy fell to levels last seen just as the coronavirus had started to wreak havoc in May 2020 and sat at -84.5.
Germany is struggling because the aftermath of the Russian invasion of Ukraine has cut its supply of cheap Russian gas. While this has increased costs, on the demand side, Germany is suffering from a weak Chinese economy. Data from the Federal Statistical Office shows that Germany’s exports to China in May sat at €7.5 billion for a 14% annual drop. Between January to May, the exports were €40.3 billion, for a 10%+ drop over 2022. With German firms such as LVMH experiencing a 14% Chinese sales drop in Q2 and Swatch witnessing a 30% drop in H1, it’s clear that Chinese consumers are in no mood for discretionary spending.
This has also led to Goldman recommending that investors sell European stocks with Chinese exposure as it is worried about its basket of European stocks. As per the bank, while “a great deal of earnings downgrades have already occurred year-to-date for our luxury basket, we worry that more could take place.” It adds that “Also, the valuation premium of the basket has deflated, but remains on the high side of its history.”
Pessimism about China is evident in the data as well. During Q2, the economy grew by 4.7%, with retail sales whimpering through a 2% growth rate. This was the slowest since December 2022, when the Zero COVID lock downs were still making their impact across the country. In the aftermath of the disappointing data from the world’s second largest economy, Goldman and Citi, which had earlier expected the Chinese economy to grow by 4.9% and 4.8%, slashed their estimates to 4.7%. Goldman commented “We believe the risk that China will miss the ‘around 5%’ full-year GDP growth target is on the rise, and thus the urgency for more demand-side easing measures is also increasing,” while Citi stated, “We believe fiscal policy needs to step up to so as to break the austerity trap and timely deploy growth support.”
Yet, while Germany and China have struggled, the world’s largest economy America has thrived. US GDP grew by 3.1% annually in Q2, lending credence to the argument of American exceptionalism. On a quarterly basis, it was up by 0.7%, despite the fact that interest rates remain at a 24 year high. This growth has created ample room for the Federal Reserve to keep rates high, and now, most expect that an interest rate cut is incoming. Due to America’s dominant role in global economic affairs, the Fed’s decisions have a global impact. For European stocks, it meant that the day before the rate cut decision, the index tracking Europe’s top 600 stocks gained 0.5% while the British stock market jumped by 0.7%.
With this context, let’s take a look at the best foreign stocks to buy.
Gil C / Shutterstock.com
Our Methodology
To make our list of the best foreign stocks to buy, we ranked the 40 most valuable exUS stocks in terms of market capitalization by the number of hedge funds that had bought their shares in Q2 2024. Out of these, the top stocks were chosen. Care was taken to ensure that stocks that were founded in America but are headquartered in Ireland or other jurisdictions were eliminated.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
10. Canadian Pacific Kansas City Limited (NYSE:CP)
Number of Hedge Fund Holders In Q2 2024: 44
Canadian Pacific Kansas City Limited (NYSE:CP) is a railway company headquartered in Calgary, Canada. The firm transports commodities, containers, and other industrial products across the US, Canada, and Mexico. This means that Canadian Pacific Kansas City Limited (NYSE:CP)’s shares perform well when economic growth is robust as industrial demand leads to a higher demand for freight and logistics solutions. With industrial output being slow in 2023, the firm’s shares have lagged and are up by just 9% over the past 12 months. However, Canadian Pacific Kansas City Limited (NYSE:CP) used the slow environment to set itself up for the future by merging with Kansas City Southern, another railway company. This enabled it to achieve $350 million in synergies in 2023 and opened up the potential for $700 million in additional synergies by 2024 end. Additionally, it also opens up Canadian Pacific Kansas City Limited (NYSE:CP) to revenue growth of as much as 3% by the end of this year.
Pershing Square mentioned Canadian Pacific Kansas City Limited (NYSE:CP) in its Q2 2024 investor letter. Here is what the firm said:
“In 2023, Canadian Pacific’s transformative acquisition of Kansas City Southern established the only railroad with a direct route linking Canada, the United States, and Mexico. The combined network connects shippers to new markets and enables nearshoring in North America while creating significant shareholder value. CPKC celebrated the one-year anniversary of this historic combination in 2024 with strong results, building momentum in the second year of this multi-year growth story.
Volume growth of 6% in the second quarter was well ahead of management’s expectations, driven by synergy wins and solid Canadian grain shipments. CPKC has made considerable progress on realizing revenue synergies despite a challenging freight environment, and now expects to exit 2024 with C$800 million of new business. These wins span a wide variety of end- markets from automotive to corn, demonstrating the unique value proposition of CPKC’s network.
Cost synergies are also tracking ahead of plan as CPKC realizes savings from combining procurement and general and administrative functions. These cost savings together with strong operations across the network led to a 280 basis point year- over-year improvement in CPKC’s adjusted operating ratio in the second quarter.
We believe that CPKC’s one-of-a-kind network and industry-leading management team are well positioned to deliver continued synergy wins and excellent operations, which should generate strong double-digit earnings growth in the coming years.”
9. Shell plc (NYSE:SHEL)
Number of Hedge Fund Holders In Q2 2024: 49
Shell plc (NYSE:SHEL) is one of the biggest oil companies in the world. It commands an 11.6% share of the global oil market, which provides the firm with a robust supply chain and logistics infrastructure which is key for any oil company and requires decades of investment. Shell plc (NYSE:SHEL)’s dependence on oil also means that it performs well when economic output is high and global economies are growing. Consequently, while the American growth engine continues to tick, slowness in Europe and China could create headwinds for the company. However, Shell plc (NYSE:SHEL) made key changes to its strategy in 2023 which should help its hypothesis in the short to medium term. The firm plans to maintain its current oil production until 2030, scrapping an earlier plan to reduce it by 55%. Shell plc (NYSE:SHEL) is also aiming to invest as much as $15 billion in clean energy products, including EV infrastructure, by 2025. This could open it up to new revenue streams, and allow it to benefit from government initiatives such as the Inflation Reduction Act in the US.
Shell plc (NYSE:SHEL)’s management shared important details about its carbon capture and storage strategy during the Q2 2024 earnings call:
“Firstly to say, we have talked about $10 billion to $15 billion of investment between 2023 and 2025 in the low carbon space. We have also said that these are nascent businesses, suspending that amount of money, we have to really be conscious of the business cases that we are driving. And critically, I would say, we are doing this for shareholder value creation. So we have to really be clear that we have line of sight to be able to actually get accretive value as a result of this.
Now we are learning through the process. I will admit to you that there are certain things which we have gotten into where we said, let’s pause come out of such as, for example, our Power Home business. At one point, we got out of it, hydrogen into mobility. We’ve gotten out of it. So we’re really trying to make sure that we lean in, we learn and then we focus. What do we see that creates the most opportunities right now, biofuels, as I’ve talked about earlier, my convictions, including, by the way, renewable natural gas such as our Nature Energy platform. Green hydrogen has to come in within the right context of regulatory support. I’ll leave Sinead to unpack that a bit more. We do like the nexus of power trading, including with flex generations of battery storage, combined cycle gas turbines, et cetera.
Those are areas where we are continuing to lean in because we are now seeing that we can create value out of them. Where does CCS fit into that? CCS, we think in the — for the coming years is a critical part of our own decarbonization journey to get to the 50% reduction in Scope 1 and 2. The Polaris one, which was in Canada, is linked to our Scotford asset, where we expect to capture some 650,000 tonnes per year from that facility. And the reason we like that is we’ve done it in Canada before. We’ve done it with Quest. We’ve done it for that facility. So it’s derisked. We know what we’re doing in that space. And the business model is one where the credits in Canada allow us to be able to create value from that investment. So it’s very much the ability to be able to monetize some of those opportunities and to sell the products, the low carbon products to our customers at a premium is what we go after.”
8. AstraZeneca PLC (NASDAQ:AZN)
Number of Hedge Fund Holders In Q2 2024: 49
AstraZeneca PLC (NASDAQ:AZN) is a British pharmaceutical company headquartered in Cambridge, United Kingdom. It is one of the best positioned companies in the industry when it comes to benefiting from the growth in cancer treatments these days. AstraZeneca PLC (NASDAQ:AZN)’s three drugs for small cell lung cancer, stage three lung cancer, and brain metastases from breast cancer are called Imfinzi, Tagriso, and Enhertu. These drugs are either in Phase III trials or late stage development, which means that they can generate significant tailwinds for AstraZeneca PLC (NASDAQ:AZN) in the near future. Imfinzi received a priority review from the FDA in August after results from the ADRIATIC phase III trial improved the risk of death by 27%. Enhertu’s phase three trial, called DESTINY achieved a 62% progression free survival rate However, AstraZeneca PLC (NASDAQ:AZN)’s shares dropped by 5% in September after the lung cancer drug DATO-Dxd failed to meaningfully improve outcomes. This has led to the firm now trading at a P/E ratio of 38, down three points from late August’s P/E ratio of 41.
AstraZeneca PLC (NASDAQ:AZN)’s current drug portfolio is also doing well. Here’s what management shared during the Q2 2024 earnings call:
“As Pascal just highlighted, we have had a very strong start to the year with total revenue increasing 18%. This was driven largely by substantial product sales growth across the portfolio. Alliance revenue also increased by 50% in the first half, mainly driven by an increase in HER2 sales in regions where Daiichi Sankyo record revenue. Please turn to the next slide. This is our core P&L. In the first half, total revenue grew 18%, as I just mentioned, and our core product sales gross margin was 82.4%. We’ve previously said that we anticipate a slightly lower core product sales gross margin for the full year versus 2023, and we expect downward pressure in the second half driven by the usual seasonal impact of medicines such as FluMist, as well as increased before supply, which comes at a lower gross margin.”
7. Shopify Inc. (NYSE:SHOP)
Number of Hedge Fund Holders In Q2 2024: 56
Shopify Inc. (NYSE:SHOP) is an internet commerce services provider that enables businesses to sell their products online. Unlike retailers, who typically place merchant products on their platform, the firm has a different business model. This means that while all purchases take place on the merchant’s website, they are redirected through Shopify Inc. (NYSE:SHOP) to enable merchants to preserve their brand identity. This is one of the most unique business models in the market, and the firm has expanded its business to allow merchants to run analytics and marketing campaigns. Shopify Inc. (NYSE:SHOP) also offers payment services, and as a cyclical stock, its shares are vulnerable to economic downturns. The company’s exposure to Europe in particular has created headwinds as it led to an 18% share price drop in May after Shopify Inc. (NYSE:SHOP) guided 19.5% revenue growth which marked a deceleration over the previous year’s figure. Any pickup in consumer spending stemming from lower rates and economic growth can create tailwinds.
Polen Capital mentioned Shopify Inc. (NYSE:SHOP) in its Q2 2024 investor letter. Here is what the firm said:
“Shopify’s business model combines 1) a mission-critical software business where merchants can run all their business operations from one dashboard and 2) a payments business with a long runway to increase attach rates and grow alongside merchants. Additionally, we believe the business possesses significant optionality to continue attaching existing merchant solutions and adding more merchant services as high-margin cross-sells. With several powerful tailwinds at their back (e-commerce, mobile commerce, social media, digital payments, seamless omnichannel, DTC, cloud software digitization) and a highly scalable business model, we think their growth will likely be stronger for longer than investors expect.”
6. Linde plc (NASDAQ:LIN)
Number of Hedge Fund Holders In Q2 2024: 63
Linde plc (NASDAQ:LIN) is a British industrial gas company that sells gasses and enables businesses to work with them. It is one of the biggest industrial gas suppliers in the world, which provides the firm with a wide moat in terms of customer base and key efficiencies through economies of scale. At the same time, since Linde plc (NASDAQ:LIN) focuses exclusively on the gas market, its stock remains vulnerable to cyclical downturns as industrial demand slows down when rates are high and economic growth is slow. This was also evident in Linde plc (NASDAQ:LIN)’s financials for H1 2024 which saw sales remain flat at $16.2 billion. This performance was also neatly segmented across geographical segments as while North American revenue grew by 3.1% annually, EMEA sales dropped by 3.6% while Asian sales were flat. However, Linde plc (NASDAQ:LIN) stands to benefit from the growth in carbon capture and the push to make green ammonia.
During the Q2 2024 earnings call, Linde plc (NASDAQ:LIN)’s management shared its view into the clean energy market:
“Turning now to the industrial end markets; chemicals and energy grew 5% from North American activity, primarily in the U.S. Gulf Coast, hydrogen as well as Mexican energy services. We supply some of the most cost-competitive customers in the world and their higher production rates reflect their share of the global market. Looking forward, this end market will likely be the largest beneficiary of the project backlog, especially around clean energy projects. While OCI represents just one example, there are several more that comprise the $8 billion to $10 billion of near-term pipeline opportunities which we are pursuing and making good progress.”
5. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Holders In Q2 2024: 67
Novo Nordisk A/S (NYSE:NVO) is a Danish pharmaceutical company that is one of the largest of its kind in the world. Yet, it is a highly specialized firm that offers products primarily for diabetes, weight loss, and rare diseases. This specialization coupled with Novo Nordisk A/S (NYSE:NVO)’s massive financial resources as highlighted by its cash and equivalents of $62.6 billion means that the firm can establish key footholds in some of the fastest growing healthcare markets. The stock is up by 44% over the past year primarily on the back of Novo Nordisk A/S (NYSE:NVO)’s Wegovy weight loss drug. Additionally, since it has considerable experience with diabetes drugs, that are precursors to weight loss treatments, the firm has been able to keep up with researching new treatments. Novo Nordisk A/S (NYSE:NVO) currently has CagriSema and amycretin in the pipeline as new weight loss treatments, and it could see additional tailwinds if CagriSema’s phase three results yield favorable results. It is also looking to use its weight loss formula semaglutide to treat Alzheimer’s.
Polen Capital mentioned Novo Nordisk A/S (NYSE:NVO) in its Q4 2023 investor letter. Here is what the firm said:
“As we discussed in last quarter’s commentary, Novo Nordisk is a newer addition to the strategy. Over the fourth quarter, we continued to build the position to an average weight. As a reminder, Novo Nordisk is a global pharmaceutical company based in Denmark and has long been the leader in developing insulin for diabetes patients. In recent years, the company’s innovation into GLP-1 drugs has been shown not only to help diabetics control blood sugar levels but also to have significant efficacy in weight loss. Obesity has become a global epidemic, creating materially negative knock-on effects for humans that range from an increase in cardiovascular events and, thus, higher mortality to a lower general quality of life. We believe that, over time, payors will recognize the value of these obesity treatments to both patients and the overall healthcare system.”
4. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders In Q2 2024: 81
ASML Holding N.V. (NASDAQ:ASML) is a Dutch industrial machinery company that specializes in manufacturing semiconductor fabrication equipment. It is Europe’s most valuable stock in terms of market capitalization, which is unsurprising given its monopoly in the high end chip making equipment sector. ASML Holding N.V. (NASDAQ:ASML) is the only firm in the world that sells EUV and high NA EUV machines to firms like Intel and TSMC. These machines are indispensable for manufacturing the latest chips with semiconductor processes such as 5 nanometers, 3 nanometers, and 2 nanometers since their low wavelength and other technical specifications allow manufacturers to print minute circuits easily on a silicon wafer. Naturally, this provides ASML Holding N.V. (NASDAQ:ASML) with a wide moat which is unlikely to go away in the future. However, its revenue is vulnerable to cyclical downturns in the semiconductor industry and geopolitical tensions restricting product sales.
Polen Capital mentioned ASML Holding N.V. (NASDAQ:ASML) in its Q4 2023 investor letter. Here is what the fund said:
“Netherlands-based ASML and Japan-based Lasertec play dominant roles within different segments of the global semiconductor industry. In both cases, shares rallied significantly in the fourth quarter of 2023, prompting our positions to grow as a percentage of the overall portfolio. We believe both companies will see demand for their products as extreme ultraviolet (EUV) lithography and soon high-numerical aperture lithography must be utilized to manufacture the world’s smallest chips. However, in our estimation, 2024 could deliver a year of less exciting growth for the semiconductor industry, which prompted us to trim these positions back.”
3. PDD Holdings Inc. (NASDAQ:PDD)
Number of Hedge Fund Holders In Q2 2024: 86
PDD Holdings Inc. (NASDAQ:PDD) is a Chinese eCommerce company that has taken the local industry by storm. It has done so by setting up a unique business model that leverages the Chinese consumer spending slowdown to its advantage. PDD Holdings Inc. (NASDAQ:PDD) does this by enabling users to buy in groups, which lets them bargain for lower prices and increases the volumes shipped per transaction on its platform. Through its success in China and by using its well established merchant network to offer lower prices, PDD Holdings Inc. (NASDAQ:PDD) is also eyeing Western markets. It operates in the West through Temu, and success in China could set it up well when it comes to competing against giants like Amazon. However, customer satisfaction, along with delivery times, remains a key part of PDD Holdings Inc. (NASDAQ:PDD)’s hypothesis. It has faced complaints from Europe’s consumer protection group, which could lead to action and a loss of brand image. Additionally, PDD Holdings Inc. (NASDAQ:PDD) also remains vulnerable to tariffs on Chinese goods, and this was also the case in September when the Biden Administration’s tariffs against Chinese goods raised the risk of increasing prices.
Hayden Capital mentioned PDD Holdings Inc. (NASDAQ:PDD) in its Q2 2024 investor letter:
“Pinduoduo (PDD): A few weeks ago, Latepost (a leading Chinese technology news outlet) confirmed Pinduoduo’s online grocery initiative is solidly profitable (LINK). According to the article, Duoduo Grocery is able to achieve ~5% net profit margins in competitive markets (where they go up against Meituan Select). In non-competitive markets, they can achieve ~10 – 15% net margins.
The company doesn’t disclose the exact scale of Duoduo Grocery, but our calculations indicate it’s likely around ~RMB 300BN this year, and still growing in the double-digits. At that level, the division is likely contributing ~US $2.5BN in annual profits17.
It’s an impressive result, but admittedly, not a huge needle-mover in light of the total $17.6BN net profits the company is expected to make this year (~14% of overall profits).”
2. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders In Q2 2024: 91
Alibaba Group Holding Limited (NYSE:BABA) is a Chinese eCommerce and cloud computing giant. With the firm responsible for at least 40% of the merchandise shipments in China, the firm benefits from a wide moat, customer volume, and merchant partnerships that are difficult to erode no matter what the prevailing economic condition is. Additionally, Alibaba Group Holding Limited (NYSE:BABA) is one of China’s biggest cloud computing companies, which provides it with a business with high margins and recurring revenues. Cloud computing can become one of the biggest beneficiaries of the surge in AI demand, enabling Alibaba Group Holding Limited (NYSE:BABA) to utilize its Cloud business as a solid base to target AI demand. However, the rise of Chinese eCommerce companies like PDD has caused market share losses for the firm as its eCommerce market share was 75% in 2015. Alibaba Group Holding Limited (NYSE:BABA)’s forward earnings estimate for 2026 of $9.91 lends it a forward P/E of 8.61, which reflects investor concerns about Chinese stocks and is considerably lower than Alibaba Group Holding Limited (NYSE:BABA)’s American peers.
O’keefe Stevens Advisory mentioned Alibaba Group Holding Limited (NYSE:BABA) in its Q2 2024 investor letter. Here is what the firm said:
“It’s rare to find a dominant market share business with significant tailwinds trading for ~10x adj. EPS. After accounting for their ~$60B net cash balance sheet, the stock is trading at 6-7x, which, we believe, is far too cheap. We understand this business would not trade at this price if it were a U.S. business. However, the valuation gap at a high single-digit P/E is pricing in a combination of the following risks – 1. China invading Taiwan. 2. Cash can never leave mainland China (disproven). 3. Increasing competition from Pinduoduo and Shien resulting in market share loss 4. China’s geopolitical tensions worsen. 5. Economic slowdown stemming from the recent housing market downturn. 6. VIE structure creates doubt over the actual ownership of the business.
All risks have merit, with cash distribution restrictions at the lower end due to the recently announced dividend and special dividend. Cash returned to shareholders totaled $16.5B in FY24, up from $13.4B in FY23. All investments carry risks; some can be diversified away, and others cannot. While incremental investments and spending will likely lead to margin compression, this is a necessary step to stabilize and potentially regain market share. The risk of continued market share loss from Pinduoduo (Temu), JD.com, Shein, and Douyin is shown below. Alibaba’s Chinese market share has declined from 78% in 2015 to 44% in 2022 and 40% in 2023.”
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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