11 Best Extremely Profitable Stocks to Buy According to Analysts

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

TTM Net Profit Margin: 40.51%

Number of Hedge Fund Holders: 186

Analyst Upside Potential: 44.24%

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a leading Taiwan-based company specializing in semiconductor manufacturing services. It is one of the world’s largest dedicated independent semiconductor foundry, producing integrated circuits for various clients.

On March 7, Brad Lin, an analyst at Bank of America Securities, maintained a Buy rating on the stock with a price target of $265. The analyst noted that the company has decided to increase its US investment to $165 billion. In addition it has also decided to construct three new fabrication plants along with two advanced packaging facilities and a R&D center. These steps are expected to strengthen Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) market leadership and generate significant economic benefits. Moreover, the expansion aligns with US policy goals to localize semiconductor production, reducing exposure to geopolitical tensions and tariffs while enhancing supply chain security. Lin also highlighted that key customers like Apple, NVIDIA, and AMD, among others rely on the company’s advanced manufacturing capabilities. These partnerships ensure strong demand for its cutting-edge AI and smartphone chips. Lastly, a strong net profit margin along with encouraging analyst upside potential makes it one of the best extremely profitable stocks to buy according to analysts.

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.”