10 Best Stocks to Buy and Hold For 2 Years

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

3-Years Sales Growth: 22.17%

Number of Hedge Fund Holders: 186

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is another leading technology company that focuses on manufacturing integrated circuits. The company engages in the development of cutting-edge semiconductor nodes, along with design ecosystems for specialized technologies. Its technologies are used across various high-level industries making it a renowned player. It is one of the best stocks to buy and hold for 2 years.

On March 28, Barclays analyst Simon Coles maintained a Buy rating on the stock with a price target of $255. Moreover, Nightview Capital mentioned Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q4 2024 investor letter, stating that the company holds a 67% market share in the global foundry market, which gives it a competitive advantage of pricing power over its competitors. The company in its February 2025 revenue release reported growing its revenue by 43.1% year-over-year to reach NT$260.01 billion.

Moreover, on March 4, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) announced its intention to increase its investment in advanced semiconductor manufacturing in the United States by $100 billion. The company already has an ongoing investment of $65 billion in Phoenix, Arizona.

Nightview Capital stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q4 2024 investor letter:

“Semiconductors are the unsung heroes of the modern economy, powering everything from AI and 5G to electric vehicles and renewable energy systems. Without them, innovation stalls. The semiconductor industry has entered a supercycle, driven by unprecedented demand across industries that rely on advanced computing. And while this notoriously boom and bust industry has seen cycles before we believe this cycle remains in relative infancy.

These advancements aren’t incremental. As AI systems scale, the need for cutting-edge semiconductors will only accelerate. We believe the companies at the forefront of this revolution are foundational to the next wave of global progress.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM): Core Opportunity: TSMC, the world’s largest dedicated chip foundry, holds an impressive 67% share of the global foundry market. Its dominance is even more pronounced at the cutting edge of semiconductor technology, where it plays a critical and unparalleled role. Their lead has only been strengthened recently and they have begun to take advantage of their pricing power.

Competitive Advantage: Revenue Growth: TSMC posted 34% YoY revenue growth in November 2024 to $8.55 billion, with robust demand across AI, high-performance computing, and 5G technologies.…” (Click here to read the full text)