10 Best Fundamental Stocks to Invest In

3) Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

10-Year Revenue Growth Rate: ~14.4%

10-Year Net Income Growth Rate: ~16.5%

Number of Hedge Fund Holdings: 156

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is engaged in manufacturing, packaging, testing, and selling integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the US, and internationally.

Market experts opine that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s long-term growth trajectory is expected to be aided by its competitive advantages. These primarily include cost advantage and intangible assets. The company has been solidifying its position as a critical player in the technology landscape. With the surge in demand for advanced chips, thanks to AI applications and high-end smartphones, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) remains at the forefront of a technological revolution.

The company’s technology leadership forms the basis of its competitive advantage. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s focus on advanced nodes, mainly its N2 technology, has been attracting high-profile customers and fueling demand. The company’s strength is evident from the increased interest in its advanced manufacturing processes.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s dominance in the semiconductor foundry market is strengthened by its ability to cater to increasing demand for AI-related chips. Wall Street believes that the company is the primary beneficiary of the ongoing growth in AI, which should continue its upward trend.

Analysts at Needham & Company LLC restated a “Buy” rating on the shares of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), issuing a $210.00 target price on 17^th October. Diamond Hill Capital, an investment management company, released its second-quarter 2024 investor letter. Here is what the fund said:

“On an individual holdings’ basis, top contributors to return in Q2 included our long positions in Alphabet, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and Microsoft. Semiconductor manufacturer Taiwan Semiconductor’s (TSMC) fundamentals remain solid as demand for its chips continues growing — particularly as the machine learning and cloud computing trends gain more traction.”