12 Best Stocks to Invest in for the Next 3 Months

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

No. of Hedge Funds: 158  

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest dedicated semiconductor foundry, producing chips for leading technology companies such as Apple, NVIDIA, and Qualcomm. The company plays a pivotal role in the global electronics manufacturing industry, and its advanced manufacturing processes and technological leadership have set it apart in the semiconductor industry.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)  is poised to dominate the semiconductor space with its cutting-edge 2nm chip technology, advanced node leadership, and strategic global expansion. The company’s dominance in advanced node technologies (3nm, 5nm, and 7nm) drives its leadership in the AI and high-performance computing (HPC) chip space. This dominance creates a significant entry barrier for competitors, as Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) leadership in advanced node technology ensures it has a near-monopoly on high-demand chips.

Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) upcoming 2nm (N2) chips will introduce the gate-all-around (GAA) transistor structure, a significant technological leap that will drive better power efficiency and performance compared to the current FinFET architecture. This innovation is essential as demand for high-performance chips continues to rise, especially in areas such as AI, HPC, and next-generation consumer electronics. The N2 node will offer 10% to 15% performance gains at the same power and complexity, while also cutting power consumption by 25% to 30% compared to N3E. The shift to N2 will enable a 15% improvement in transistor density, allowing chip designers to pack more computing power into smaller spaces.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is building several new fabrication plants which will increase its production capacity and solidify its position as the world’s leading semiconductor foundry. The company’s $11 billion investment in a new semiconductor fabrication plant in Dresden, Germany, represents a significant strategic shift toward regional diversification.