10 Best Long Term Tech Stocks to Buy Right Now

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

10-Year Revenue Growth: ~14.2%

Number of Hedge Fund Holders: 186

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is engaged in manufacturing, packaging, testing, and selling integrated circuits and other semiconductor devices. Morningstar believes that the company’s leadership in node advancement stems from the ability to correctly and consistently prioritize correct areas in which to innovate for nodes while, at the same time, maintaining fiscal discipline. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s leading position in advanced processes can result in attracting and retaining more customers, stable utilization of expanding production capacities, and reduce production costs, leading to increased returns than competitors due to the cost advantage and ensuring enough profits to finance R&D and capex on subsequent nodes.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is expected to earn higher gross margins for the foreseeable future due to the economies of scale and premium pricing, which are aided by cutting-edge process technologies. Morningstar also expects that the company can see a top-line CAGR of 15.5% over the upcoming 5 years. As per the firm, IoT and automotive applications are expected to act as sources of higher demand for newer specialty products.

Wedgewood Partners, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was another top contributor to performance during the quarter and for the year. The Company’s earnings growth dramatically accelerated compared to last year as the Company’s wafer fabrication and packaging volumes soared in 2024. In addition, the Company customer prices rebounded in the face of more normalized capital expenditures. The Company maintains a near-monopoly in the fabrication of nearly every new AI accelerator brought to market over the past two years. They continue investing tens of billions to build and 7ill future capacity with orders for what seems to be insatiable hyperscale demand for accelerated computing. The stock ended the year trading at a consensus forward earnings multiple that is several points lower than large cap growth benchmarks, despite the Company’s dominant position in the most important industry that is driving one of the largest technological shifts in a generation.”