13 Best Big Tech Stocks To Buy Now

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

Number of Hedge Fund Holders: 156

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a semiconductor company based in Taiwan. It offers integrated circuits and other semiconductor devices.

The reason why Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is such a popular semiconductor stock pick is its position as a contract manufacturer of chips. Because of this position, the company is a partner to several notable semiconductor players, like Nvidia and Advanced Micro Devices. As a result, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is benefitting from the AI market boom that is propelling these companies to provide more chips in the US and internationally.

A customer for Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is Apple. This tech giant makes up about a quarter of Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) sales in a year. With Apple investing in artificial intelligence now with the release of Apple Intelligence, TSMC may also begin to see its smartphone business pick up – this is a major tailwind for the stock.

Another tailwind propelling Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) to greater heights is its expected launch of a new chip design in 2025. This is the nanometer chip, which is a next-generation technology that is expected to overtake the market upon its release – particularly because of the energy efficiency the new design is introducing.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was seen in the portfolios of 156 hedge funds in the second quarter, with a total stake value of $21.3 billion.

Ave Maria mentioned Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its second-quarter 2024 investor letter:

“Top contributors to performance included SharkNinja, Inc. and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). Taiwan Semiconductor Manufacturing Company Limited is the global leader in semiconductor foundry services, with a dominant market share position in advanced semiconductors. The company has significant pricing power and stands to benefit from secular “megatrends” (5G, high performance computing, AI, rising silicon content per device, etc.) due to its technological leadership.”