10 Tech Stocks to Monitor Amid Market Volatility According to Bernstein Analyst

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

Number of Hedge Fund Holders: 156  

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) makes and sells integrated circuits and semiconductors. The chip revolution that powers the AI boom can be better understood by looking at a few key numbers. For example, consider the first Intel microprocessor. It had about 2,000 transistors. Now, compare this to the latest NVIDIA chips, one of the customers of TSM, that are packed with more than 200 billion transistors. The difference is mind-boggling. Making identical copies of a single chip for an iPhone requires one TSM fab to produce more than a quintillion transistors every few months. Viewed over the course of a year, the entire semiconductor industry produces more transistors than the combined quantity of all goods produced by all other companies, in all other industries, in all human history, researchers contend. TSM is the apex predator in this business.

Bernstein analyst Mark Li has an Outperform rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock and recently raised the price target to $200 from $150, noting that data center AI revenue was rising for the firm as planned, but there was more data indicating AI driving an upward shift in smartphone. The analyst further added that more CoWoS, earlier Lunar Lake, and possible price hike can drive EPS to grow another 26% in 2026.