10 Best Manufacturing Stocks To Buy Now

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

Number of Hedge Fund Holders: 158

Taiwan Semiconductor Manufacturing Company Limited. (NYSE:TSM) is the world’s largest contract chipmaker, renowned for its advanced semiconductor technologies.

In the fourth quarter of 2024, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) reported net revenue of approximately $26.45 billion, marking a 38.8% year-over-year increase, driven by strong demand for artificial intelligence (AI) and high-performance computing applications. The company also generated a free cash flow of about $7.8 billion in Q4, up from $6.8 billion in Q4 2023. The company expects continued growth in AI-related chip demand, projecting that revenue from AI-related servers and processors will double in 2025.

Despite a recent earthquake in southern Taiwan causing some production disruptions, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) expects first-quarter 2025 revenue to be between $25 billion and $25.8 billion, in line with its guidance.

Taiwan Semiconductor Manufacturing Company Limited. (NYSE:TSM)’s strategic importance in the semiconductor industry has attracted significant interest from institutional investors, with approximately 158 hedge funds in Insider Monkey’s Q3 2024 database holding positions in the company. Simon Coles of Barclays recently reiterated a “Buy” rating on the company, raising the price target from $240 to $255, indicating a potential upside of approximately 23.71% from the current price.

Overall Taiwan Semiconductor Manufacturing Company Limited. (NYSE:TSM) ranks first on our list of the 10 Best Manufacturing Stocks To Buy Now. While we acknowledge the potential for Taiwan Semiconductor Manufacturing Company Limited. (NYSE:TSM) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Taiwan Semiconductor Manufacturing Company Limited. (NYSE:TSM) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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