10 Good Stocks to Buy According to Hedge Funds

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

No of Hedge Fund Holders: 186

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a leading Taiwan-based semiconductor company specializing in integrated circuit manufacturing services. The company offers advanced process technologies, including 5nm mass production, and is actively developing 3nm and 2nm process nodes.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) faced operational challenges in January 2025 after a 6.4-magnitude earthquake in southern Taiwan led to wafer losses, though facilities remained structurally intact. Meanwhile, speculation around a potential investment in Intel surfaced, though Taiwan’s Economy Ministry denied receiving official information. It reaffirmed that any major overseas joint ventures would require government approval. These developments highlight the company’s resilience in managing disruptions.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) delivered strong Q4 2024 results, with net revenue rising 14.3% YoY to $26.88 billion, driven by solid demand for advanced chip technologies. Net income surged 15.2% YoY to $11.39 billion, while EPS climbed 57% to $0.44, reflecting strong profitability. Operating expenses increased 20.6% YoY to $2.63 billion, in line with business expansion.

On February 18, 2025, Charles Shi of Needham reiterated his “Strong Buy” rating on the stock, maintaining a $225 price target.