10 Best Stocks to Buy According to Billionaire Steve Cohen

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

Point72 Asset Management’s Q4 Stake: $492.7 million

Number of Hedge Fund Holders: 186

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a leading Taiwanese corporation that provides semiconductor manufacturing services. It is one of the world’s largest specialized independent semiconductor foundries, manufacturing integrated circuits for a variety of customers.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSMC) reported an 11% decrease in February revenue month over month, but a significant gain of 43% year-over-year, reaching NT$260 billion.

On March 17, Bernstein analysts maintained their Outperform rating and a $251 price target for Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) shares. The firm’s study centered on the probable effects of TSMC’s $165 billion investment in US manufacturing capabilities. Bernstein’s analysis investigates the level of regional diversity, semiconductor manufacturing self-sufficiency in the United States, and the potential impact on TSMC’s profit margins from this investment. Furthermore, the firm believes that TSMC’s investment would result in 25-30% of the company’s total income being generated in the United States by early 2030s.

Parnassus Growth Equity Fund stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q4 2024 investor letter:

“Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) leading position in AI chip production continued to boost investor sentiment on the stock. During the year, moves by several large technology companies to increase their AI investments underscored demand for TSMC’s chips and supported the stock’s rise.”