In this article, we will take a detailed look at 12 Best ADR Stocks to Buy According to Hedge Funds.
American Depositary Receipts (ADR) are US-listed securities that represent shares in foreign companies, allowing American investors to gain exposure to international equities without dealing with foreign exchanges or currencies. Unlike regular shares of domestic companies, ADRs are issued by US banks and trade on American exchanges, typically in US dollars. While they provide easier access to foreign markets, ADRs can carry additional risks such as currency fluctuations, geopolitical factors, and differences in accounting standards or regulatory environments. Investors should also note that ADRs come in two forms: sponsored and unsponsored. Sponsored ADRs are issued in partnership with the foreign company and typically offer more reliable financial reporting and investor communication. Unsponsored ADRs, on the other hand, are created without the company’s direct involvement and may have limited information available, making due diligence more challenging.
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ADRs were not particularly popular in the last 15 years, as the US stock market has been the best-performing developed market since the 2008 financial crisis, significantly and consistently outperforming all major European markets as well as the Chinese stock market. The US stock market has massively benefited from the US’s technological leadership and the emergence of tech giants with multi-trillion-dollar capitalizations, a more favorable business environment with lower tax rates, more aggressive financial stimulus, and, more importantly, significantly higher productivity growth vs. other regions. As a result, the US stock markets not only delivered higher earnings growth but also experienced the largest increase in valuations compared to Europe and China. The latter is partially attributed to foreign capital flowing into the US market as investors recognized the superior growth opportunities of US companies.
The recent political developments initiated by the Trump 2.0 regime have set the stage for a potential reversal of the aforementioned trends, which may drive relative outperformance of foreign markets and make ADRs attractive again. First, the Trump 2.0 tariff turmoil and massive cuts in federal spending are likely to cause an economic slowdown and thus cut the earnings growth potential of domestic companies. Second, the threat of tariffs imposed on the USA’s allies is already causing retaliatory measures, including the potential substitution of American products for European or Canadian alternatives (again, this endangers the earnings growth potential of US domestic companies while boosting the potential of European and Canadian companies). Third, Europe has recognized that the US has become a less reliable partner, as evidenced by the major shift in policies of the new administration, and is already taking steps to ensure its independence and minimize dependence on the US. This is illustrated by the recent decision of Germany to create a €500 billion infrastructure fund to boost its defense capabilities (funds which are planned to be spent primarily on European contractors). Last but not least, the increasing tensions between the Western allies could potentially drive a return of European capital to the European continent, which may cause a relative valuation repricing in favor of the European stock market.
With that being said, the key takeaway for readers is that the current developments in the US and Europe suggest a potential break of the trend in which the US strongly outperformed Europe and China for the last 15 years. In this context, gaining more international exposure through ADRs could be a great way to not only hedge domestic risk but also gain exposure to new emerging tailwinds such as the accelerating European spending on defense. Both the European and Chinese stock markets have outperformed the US since election day, meaning that there is already strong confirmation for the developments discussed above.
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Our Methodology
For this article, we used a Finviz screener to filter all the available ADR stocks. Then we compare the list with our Q4 2024 proprietary database of hedge funds’ ownership and include in the article the top 12 stocks with the largest number of hedge funds that own the stock.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12. GSK plc (NYSE:GSK)
Number of Hedge Fund Holders: 48
GSK plc (NYSE:GSK) is a UK-based global biopharmaceutical company focused on the research, development, and manufacturing of medicines and vaccines. Its operations are structured around three core therapeutic areas: infectious diseases, HIV, and immunology/respiratory. GSK is a world leader in vaccines and has a broad portfolio targeting diseases such as shingles, meningitis, and influenza. In pharmaceuticals, it develops treatments for conditions including asthma, lupus, and HIV.
GSK plc (NYSE:GSK) has several significant commercial developments planned for 2025, with BLENREP’s relaunch being the primary focus, followed by Nucala’s introduction into COPD and expanding Shingrix’s market reach. BLENREP’s relaunch is particularly notable with compelling data from the DREAMM-7 and DREAMM-8 programs, projecting a 33-month incremental survival benefit over daratumumab. The company plans a tiered introduction approach for BLENREP, initially targeting experienced healthcare providers before expanding to broader markets. In the vaccines segment, Shingrix maintains strong potential with 22 million eligible patients still untapped in the US, while the company implements new strategies focusing on physician education and targeting specific patient subgroups.
For RSV vaccines, GSK plc (NYSE:GSK) anticipates future developments with 36-month immune data presentation to ACIP in June, though revaccination and expanded population coverage are longer-term prospects. In oncology, while PARP inhibitors remain relatively static, Jemperli shows promising growth, particularly in endometrial cancer, where it splits the market evenly with Merck’s pembrolizumab. The company’s recent acquisition for gastrointestinal stromal tumors and developments in the B7-H3 program, including three breakthrough designations for small cell cancer, demonstrate GSK’s strategic focus on targeted therapies. With 48 hedge funds owning the stock, GSK is one of the best ADR stocks to buy.
11. HDFC Bank Limited (NYSE:HDB)
Number of Hedge Fund Holders: 50
HDFC Bank Limited (NYSE:HDB) is an India-based financial institution and one of the country’s largest private-sector banks. It offers a broad range of banking services, including retail banking, wholesale banking, treasury operations, and digital banking products. The bank provides loans, credit cards, savings and current accounts, and investment services to individuals and businesses. HDB has an extensive distribution network across urban and rural India, supported by digital platforms and mobile banking. It also engages in trade finance, cash management, and foreign exchange services. With 50 hedge funds owning the stock, HDB is one of the best ADR stocks to buy.
HDFC Bank Limited (NYSE:HDB) is operating in a challenging macro environment characterized by tight liquidity conditions, signs of moderating urban demand, tepid private capital expenditure, and volatility in the Indian rupee. Despite these challenges, the bank has shown positive momentum with robust growth in average deposits at 16% and continued market share gains. The bank has successfully normalized its credit deposit ratio, with deposit growth outpacing loan growth, achieving an AUM advance growth of 8% YoY. Net Interest Margins have remained stable despite headwinds from tight liquidity and the pricing environment. The bank has maintained strong credit parameters across segments, with slippages, gross NPA, and credit costs remaining resilient and stable, excluding some cyclical patterns in the agri sector.
On the operational front, HDFC Bank Limited (NYSE:HDB) has added over 1,000 branches while maintaining tight cost control with only 7% YoY cost growth. Looking forward, HDB is well-positioned with sufficient liquidity and capital, allowing it to capture market share when macro conditions stabilize. The bank’s strategy includes growing deposits faster than the system and maintaining a balanced approach to growth, in line with their committed glide path on the CD ratio. The management has outlined a growth trajectory where FY2025 will see growth lesser than the system, FY2026 will be in line with the system, and FY2027 will be faster than the system.
10. Trip.com Group Limited (NASDAQ:TCOM)
Number of Hedge Fund Holders: 51
Trip.com Group Limited (NASDAQ:TCOM) is a China-based global online travel services provider. The company operates several brands, including Trip.com, Ctrip, Skyscanner, and Qunar, offering a wide range of travel products such as hotel bookings, airline tickets, vacation packages, and corporate travel management. Its platforms support users with travel planning, price comparisons, and real-time booking services. TCOM serves both domestic and international travelers, with a strong presence in China and growing operations across Asia, Europe, and other global markets.
Trip.com Group Limited (NASDAQ:TCOM) demonstrated strong financial performance in Q4 2024, with net revenue growing 23% YoY to RMB 12.7 billion, while full-year revenue increased 20% to RMB 53.3 billion. The company’s core OTA businesses achieved a significant GMV of over RMB 1.2 trillion (USD 169 billion) in 2024. Outbound travel showed robust growth, with hotel and air ticket bookings recovering to more than 120% compared to 2019, outperforming the industry by 30% to 40%. The company’s international business demonstrated strong momentum, representing 14% of group revenue in Q4 and 10% in 2024, with air ticket and hotel bookings on the international OTA platform growing by over 70% YoY.
Trip.com Group Limited (NASDAQ:TCOM) has strengthened its global presence through strategic investments in technology and talent, operating 16 global call centers and employing thousands of travel professionals across 28 countries. The company’s commitment to AI innovation was evident through TripGenie, which saw significant growth with traffic surging by 200%, browsing time increasing by nearly 100%, and total conversations rising by 200%. Looking ahead, management announced enhanced capital return initiatives for 2025, including a share repurchase program of up to $400 million and a cash dividend totaling approximately $200 million. With 51 hedge funds owning the stock, TCOM is one of the best ADR stocks to buy.
9. Shell plc (NYSE:SHEL)
Number of Hedge Fund Holders: 54
Shell plc (NYSE:SHEL) is a UK-based global energy company engaged in the exploration, production, refining, and marketing of oil and natural gas, as well as in the development of low-carbon energy solutions. Its operations span upstream (oil and gas extraction), integrated gas (including liquefied natural gas), and downstream segments (refining, chemicals, and fuels marketing). SHEL also invests in renewable energy, hydrogen, and electric vehicle charging infrastructure as part of its energy transition strategy. The company ranked eleventh on our recent list of 11 Best Crude Oil Stocks To Buy Right Now.
In 2024, Shell plc (NYSE:SHEL) reported one of its strongest financial years to date, posting $54.7 billion in cash flow from operations (the second highest in its history) and adjusted earnings of $23.7 billion. The company outperformed its cost-saving goals by cutting $3.1 billion in structural expenses, exceeding its $2–3 billion target range a full year ahead of schedule. Capital spending remained disciplined, ending below the lower bound of guidance. SHEL also prioritized shareholder returns, distributing over $22.5 billion (mainly through share buybacks) and positioning itself at the top end of its commitment to return 30–40% of cash flow from operations.
Operationally, Shell plc (NYSE:SHEL) made notable strides. Major upstream developments such as Whale and Mero-3 commenced production, significantly boosting output and pushing SHEL beyond 80% of its goal to bring over 500,000 barrels of oil equivalent per day online by 2025. In its integrated gas segment, the company expanded its portfolio through the acquisition of Pavilion Energy and participation in the Ruwais LNG project in Abu Dhabi. The downstream business also advanced rapidly, installing over 70,000 public EV charging points globally – a milestone achieved a year earlier than anticipated. Looking forward, management announced a 4% dividend increase and a new $3.5 billion share buyback plan, continuing a trend of robust shareholder returns for the 13th consecutive quarter.
8. AstraZeneca PLC (NASDAQ:AZN)
Number of Hedge Fund Holders: 55
AstraZeneca PLC (NASDAQ:AZN), one of the best ADR stocks, is a UK-based global biopharmaceutical company focused on the discovery, development, and commercialization of prescription medicines. Its core therapeutic areas include oncology, cardiovascular, renal and metabolism (CVRM), respiratory, and rare diseases. The company has a strong pipeline and product portfolio featuring drugs such as Tagrisso, Farxiga, and Symbicort. AZN also engages in strategic collaborations with biotech firms, academic institutions, and global health organizations to advance research and expand access to treatments.
AstraZeneca PLC (NASDAQ:AZN) delivered a strong performance in 2024, with total revenue rising by 21% and core EPS up 19%. The company demonstrated efficient cost management, as core operating expenses increased by only 14%, showcasing operational leverage. Significant progress was made in its R&D pipeline, with nine high-value pivotal trials initiated during the year, representing over $5 billion in non-risk-adjusted peak revenue potential. AZN continued to advance toward its goal of launching 20 new medicines by 2030, having already secured approvals for eight, including its latest, Datroway. Looking to 2025, the company expects revenue growth in the high single digits and a low double-digit increase in core EPS despite some upcoming challenges.
While AstraZeneca PLC (NASDAQ:AZN) faces headwinds such as the US Inflation Reduction Act impacts, China’s volume-based procurement, and the patent expiry of Brilinta, the company remains confident in continued demand for its innovative therapies across global markets. Its pipeline remains robust, with over 90 late-stage clinical trials ongoing, each averaging more than $1 billion in potential peak sales and collectively offering more than $15 billion in non-risk-adjusted revenue prospects.
AZN is also expanding its global manufacturing footprint with new facilities for antibody-drug conjugates in Singapore, cell therapies in Maryland, active pharmaceutical ingredients in Ireland, and inhaled treatments in China.
7. Johnson Controls International plc (NYSE:JCI)
Number of Hedge Fund Holders: 55
Johnson Controls International plc (NYSE:JCI) is an Ireland-based global leader in smart, healthy, and sustainable building technologies and solutions. The company provides products and services related to HVAC systems, building automation, fire and security systems, and energy management. Its offerings serve commercial, industrial, and residential buildings, with a focus on energy efficiency and digital integration through platforms like OpenBlue. JCI works with building owners, governments, and institutions to modernize infrastructure and support sustainability goals through advanced technologies and services.
Johnson Controls International plc (NYSE:JCI) is undergoing significant strategic changes with a new CEO joining in less than a month, focusing on reorganizing the operating model to drive growth and profit opportunities. The company maintains a mid-single-digit growth algorithm currently, with the potential to accelerate beyond this rate through an improved operating model and market approach. Service business represents about one-third of revenue, with over half being contractual revenue, and the company has improved its service retention rates through enhanced connected services capabilities. The Global Products segment has demonstrated strong performance with margins reaching 30%, driven by volume growth in both indirect and direct channels, with the potential to reach mid-30s as volume continues to grow.
Johnson Controls International plc (NYSE:JCI)’s capital allocation strategy includes plans to return approximately $5 billion to shareholders following the Bosch transaction, while maintaining an active M&A pipeline focused on core domain capabilities. JCI is targeting improved cash conversion rates moving into the 90s, with expectations to reach par conversion over the next couple of years as restructuring costs decrease and working capital management continues to improve. With 55 hedge funds owning the stock and a new promising CEO in place, JCI is one of the best ADR stocks to buy.
6. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Holders: 64
Novo Nordisk A/S (NYSE:NVO) is a Denmark-based global healthcare company specializing in the development, manufacturing, and marketing of pharmaceutical products for chronic diseases. Its primary focus areas are diabetes care, obesity management, and rare diseases such as hemophilia and growth disorders. The company is a global leader in insulin and GLP-1 therapies, with widely used products like Ozempic, Wegovy, and NovoRapid. It is among the best ADR stocks to invest in.
Novo Nordisk A/S (NYSE:NVO) delivered strong financial performance in 2024 with sales growth of 26% and operating profit growth of 26% at constant exchange rates. The company expanded its patient reach to more than 45 million patients with diabetes and obesity treatments, representing an increase of almost 4 million patients compared to the previous year. The acquisition of three Catalent manufacturing sites was completed in December 2024, which will expand NVO’s global fill and finish footprint from 11 to 14 sites, enabling increased market supply beyond pre-existing CMO contracts from 2026. In R&D developments, the company had several significant obesity treatment readouts, including CagriSema, semaglutide 7.2 milligram, and amycretin.
Looking ahead to 2025, Novo Nordisk A/S (NYSE:NVO) expects sales growth between 16% and 24% at constant exchange rates, driven mainly by volume growth of GLP-1-based treatments for obesity and diabetes care. Operating profit is expected to grow between 19% and 27% at constant exchange rates, reflecting continued investments in research, development, and commercial activities. The company maintains broad formulary access for Wegovy in the US, covering 55 million people living with obesity, with more than 80% of patients paying less than $25 for a prescription.
5. Linde plc (NASDAQ:LIN)
Number of Hedge Fund Holders: 70
Linde plc (NASDAQ:LIN) is an Ireland-based global industrial gases and engineering company. It produces and supplies atmospheric and process gases such as oxygen, nitrogen, argon, hydrogen, and carbon dioxide to a wide range of industries, including healthcare, chemicals, energy, manufacturing, and electronics. LIN also offers gas processing solutions and operates one of the world’s largest engineering businesses for gas production plants. It plays a key role in energy transition efforts through its investments in clean hydrogen and carbon capture technologies. LIN ranked fifth on our recent list of 7 Best Natural Resources Stocks to Invest in According to Hedge Funds.
Linde plc (NASDAQ:LIN) delivered another successful year in 2024, with EPS increasing 10% and EBIT margins expanding 190 basis points to 29.5%, along with a strong ROC of 25.9%. The company achieved a record sale of gas backlog of $7 billion within its total backlog of $10 billion, demonstrating strong future growth potential. In terms of operational achievements, LIN set a record for small on-site wins with 59 long-term agreements for 64 plants while also completing 18 packaged gas acquisitions with annualized revenues of approximately $200 million. The company’s 2025 guidance projects EPS growth of 4% to 7%, or 8% to 11% when excluding an estimated 4% currency headwind, maintaining its long-term double-digit EPS growth trajectory through a combination of capital allocation and management actions.
Linde plc (NASDAQ:LIN) continues to make progress on sustainability initiatives, with over 40% of total power consumption now being low carbon based, and increased its active low carbon and renewable energy consumption by 19% YoY. The company’s management remains focused on network density improvement, pricing power, and cost management while maintaining disciplined contract terms to ensure profitable growth regardless of macroeconomic conditions. Despite facing challenges from currency headwinds and flat industrial production growth expectations for 2025, management anticipates continued margin expansion of 20 to 50 basis points. With 70 hedge funds owning the stock and strong guidance in place, LIN is one of the best ADR stocks to buy.
4. PDD Holdings Inc. (NASDAQ:PDD)
Number of Hedge Fund Holders: 85
PDD Holdings Inc. (NASDAQ:PDD) is a China-based multinational commerce group operating digital platforms that connect manufacturers with consumers. Its flagship platform, Pinduoduo, offers a wide range of products, including apparel, electronics, household goods, and fresh produce, primarily through a social commerce model that encourages group buying for discounts. The company also operates Temu, an international e-commerce platform targeting markets outside China. PDD serves hundreds of millions of users, with a strong presence in China and expanding global reach through Temu.
PDD Holdings Inc. (NASDAQ:PDD) reported steady financial performance in Q4 2024, with revenues rising 24% YoY to RMB 110.6 billion. For the full year, total revenue reached RMB 393.8 billion, marking a 59% increase. The company continued to drive its high-quality development strategy through a range of initiatives, including a RMB 10 billion fee reduction program, expanded logistics services for remote areas, and targeted support for premium merchants. These efforts helped over 10 million merchants lower operational costs and improve efficiency. Logistics enhancements also led to double-digit growth in order volume and enabled free shipping access for nearly 100 million users in underserved regions.
In early 2025, PDD Holdings Inc. (NASDAQ:PDD) further strengthened its platform governance by launching a merchant rights protection committee to improve transparency and communication with sellers. The company maintained its commitment to rural development by investing in agricultural technology, optimizing supply chains, and training future farming talent. Despite facing external challenges and fierce market competition, leadership remains confident that continued investment in its ecosystem will yield sustainable long-term growth. Looking ahead, management plans to deepen its support for quality merchants, expand the availability of premium products – particularly in remote areas – and cultivate a balanced ecosystem that benefits consumers, merchants, and broader communities. With 85 hedge funds owning the stock, PDD is one of the best ADR stocks to buy.
3. Sea Limited (NYSE:SE)
Number of Hedge Fund Holders: 86
Sea Limited (NYSE:SE) is a Singapore-based global consumer internet company operating across three main segments: digital entertainment, e-commerce, and digital financial services. Its gaming arm, Garena, distributes and develops online games, including the popular title Free Fire. Shopee, its e-commerce platform, is a leading online marketplace in Southeast Asia and Latin America, offering a wide range of consumer products. SeaMoney provides digital payment and financial services such as mobile wallets, payment processing, and credit solutions.
Sea Limited (NYSE:SE) delivered a strong performance in 2024, with all three businesses achieving double-digit growth and exceeding original guidance, marking their second consecutive year of annual positive profit. The e-commerce division, Shopee, reached a significant milestone with GMV exceeding $100 billion and over 10 billion orders in 2024 while maintaining market leadership with 28% YoY GMV growth. The digital financial services segment demonstrated remarkable growth with an annual revenue of $2.4 billion and an adjusted EBITDA of over $700 million, both achieving over 30% YoY growth. The loan book size grew impressively by more than 60% YoY in the Q4, surpassing $5 billion while maintaining a stable 90-day NPL ratio of 1.2%.
In digital entertainment, Garena’s Free Fire made a strong comeback, with annual bookings growing 34% YoY in 2024, maintaining its position as the world’s largest mobile game by average DAU. Looking ahead to 2025, Sea Limited (NYSE:SE) expects continued growth across all segments, with Shopee’s GMV projected to grow around 20%, the loan book size expected to grow faster than Shopee’s GMV, and Garena anticipated to achieve double-digit growth in both user base and bookings. The company’s stronger financial position and experienced management through multiple cycles position it well for sustainable growth in its markets.
2. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 107
Alibaba Group Holding Limited (NYSE:BABA) is a China-based multinational technology company operating across e-commerce, cloud computing, digital media, and logistics. Its core businesses include online retail platforms like Taobao and Tmall, which connect consumers and merchants across China, and Alibaba Cloud, one of Asia’s largest cloud service providers. The company also operates Cainiao for logistics and AliExpress for cross-border e-commerce targeting international markets. It supports its ecosystem with digital payment services through Ant Group (in which it holds a stake) and data-driven marketing. BABA ranked first on our recent list of 7 Cheap Global Stocks to Buy Right Now.
Alibaba Group Holding Limited (NYSE:BABA) delivered solid results in 2024, showcasing renewed momentum across its core operations following a year of strategic transformation. Its domestic e-commerce platforms, Taobao and Tmall, posted a 9% YoY increase in customer management revenue, fueled by gains in both user acquisition and order volume. The cloud division also saw a notable uptick, with revenue growth reaching 13% and AI-driven product lines sustaining triple-digit annual growth for the sixth consecutive quarter. Backed by a robust financial position – including a net cash reserve of RMB 378.5 billion (USD 51.9 billion) – BABA remains well-positioned to support its future plans. It is among the best ADR stocks on our list.
Alibaba Group Holding Limited (NYSE:BABA) has sharpened its strategic priorities around three key areas: domestic and global e-commerce, AI combined with cloud services, and internet platform businesses. To support this vision, the company is set to ramp up investments in AI infrastructure over the next three years, with spending anticipated to surpass the total of the past decade. It has also continued its shift away from offline retail, finalizing deals to exit Sun Art and Intime for up to $1.6 billion and $1 billion, respectively. International e-commerce sustained strong momentum, with management expecting the segment to achieve its first profitable quarter in the upcoming fiscal year. Efficiency gains were also evident in other areas, such as Amap, which turned profitable during the quarter.
1. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 186
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a Taiwan-based global leader in semiconductor manufacturing. It operates as a pure-play foundry, producing integrated circuits for a wide range of customers, including major fabless chip designers. TSM manufactures chips used in smartphones, high-performance computing, automotive electronics, and IoT devices, with advanced process technologies down to 3nm. The company does not design its own chips but focuses exclusively on fabrication, offering services from design support to backend packaging. TSM’s production facilities are primarily in Taiwan, with expansion underway in the US and Japan to support global demand and supply chain diversification.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) reported strong financial performance in the latest Q4 2024, with revenue increasing 14.3% sequentially, supported by robust demand for 3-nanometer and 5-nanometer technologies. For the full year 2024, TSM’s revenue increased 30% in USD terms to $90 billion, outperforming the foundry industry growth. Looking ahead to 2025, management expects another strong growth year with revenue forecasted to increase by close to mid-20s percent in USD. AI-related demand remains particularly robust, with revenue from AI accelerators expected to double in 2025 after more than tripling in 2024.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) announced significant expansion plans, with the capital budget set between $38 billion and $42 billion for 2025, focusing on advanced process technologies, specialty technologies, and advanced packaging. In terms of global manufacturing, TSM’s first fab in Arizona has entered high-volume production in Q4 2024 using N4 process technology, achieving yields comparable to Taiwan fabs. The company is also progressing with expansion plans in Japan and Germany, with the first specialty technology fab in Kumamoto starting volume production at the end of 2024. With regard to technological advancement, TSM’s 2-nanometer technology is on track for volume production in the second half of 2025, while A16 technology featuring Super Power Rail is scheduled for volume production in the second half of 2026. Despite the higher costs associated with overseas operations, which are expected to impact gross margins by 2-3%, TSM maintains its long-term gross margin target of 53% and higher.
Overall, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) ranks first on our list of the 12 best ADR stocks to buy according to hedge funds. While we acknowledge the potential of TSM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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