10 Buzzing AI Semiconductor Stocks in 2024

3. Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM)

YTD Price Performance: +52%

Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) surged earlier this month after the company posted blockbuster numbers for April, reporting a 60% increase in revenue for the month. Taiwan Semiconductor Mfg. Co. Ltd.’s (NYSE:TSM) revenue in the quarter ending April 30 increased 26.2% from a year ago. Top companies like Nvidia, Apple, AMD and Qualcomm rely on Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) for their chips. Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) shares have gained about 52% so far this year.

Third Point Management stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its first quarter 2024 investor letter:

“During the quarter, we added to our Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) investment, which we initiated in May of last year. TSMC is coming off its worst year since the Global Financial Crisis, and in the years to come we see a combination of cyclical recovery plus structural growth in AI demand fueling substantial earnings growth for the company.

We view TSMC as the “toll road” of the semiconductor industry, particularly for AI compute. TSMC holds more than 90% market share for leading edge semiconductor manufacturing, where all AI silicon is being processed. Beyond their reliable execution producing some of the most complex products on earth in volume, TSMC has spent decades optimizing for and building ecosystems around their 500+ customers, an advantage that cannot be replicated overnight…” (Click here to read the full text)