10 Best High Volume Stocks To Buy According to Hedge Funds

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

Avg Volume: 16.74 million

Quarterly Revenue Growth: 33.01%

Number of Hedge Fund Holders: 156

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a Taiwan-based semiconductor firm that provides integrated circuits and other semiconductor devices to major tech companies, including Apple and NVIDIA.

In the second quarter of 2024, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) reported a 13.6% sequential increase in revenue, driven by rising demand for its advanced nanometer technologies. The company anticipates a 50% compound annual growth rate (CAGR) in revenue from AI chips by 2027 and projects overall revenue growth of 20% for the year ending 2024.

Bernstein has maintained an Outperform rating on TSM, noting that the stock remains attractively valued, particularly as the company is positioned to perform well during a recession. Analysts from Bernstein expect the company’s revenue to grow by 26% and earnings per share by 29% this year, with continued momentum into 2025 and beyond. This growth is fueled by strong demand from data center AI and high-end smartphones utilizing TSMC’s advanced N3 and N4/5 nodes.

As of the end of Q2 2024, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was held by 156 hedge funds, with total stakes valued at $21.28 billion. Fisher Asset Management was the largest shareholder, holding a position worth $4.94 billion as of June 30.

Ave Maria World Equity Fund stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q2 2024 investor letter:

“Top contributors to performance included SharkNinja, Inc. and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). Taiwan Semiconductor Manufacturing Company Limited is the global leader in semiconductor foundry services, with a dominant market share position in advanced semiconductors. The company has significant pricing power and stands to benefit from secular “megatrends” (5G, high performance computing, AI, rising silicon content per device, etc.) due to its technological leadership.”