15 Best Blue Chip Stocks to Buy According to Billionaires

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

Number of Billionaire Investors: 30

Number of Hedge Fund Holders: 186

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the largest contract semiconductor manufacturer in the world. Some of its prominent customers include semiconductor companies that outsource all or a part of their chip production, including Advanced Micro Devices, Nvidia, Broadcom, and more.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) reported notable growth in its net revenue in March 2025, reaching around NT$285.96 billion. This reflects a 10% rise compared to February 2025 and a 46.5% growth compared to March 2024. Its revenue for fiscal Q1 2025 also underwent a 41.6% surge compared to fiscal Q1 2024, reaching NT$839.25 billion. These trends reflect solid market demand for Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) semiconductor products and robust growth.

Demand for the company’s services is one of the primary reasons investors are bullish on the stock. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has plans to grow its capital expenditures (capex) to between $38 billion and $42 billion in 2025, which translates to an annual growth of 28% to 41%.

The company also pays a dividend, unlike most companies in the semiconductor industry. Wedgewood Partners stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q4 2024 investor letter:

“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was another top contributor to performance during the quarter and for the year. The Company’s earnings growth dramatically accelerated compared to last year as the Company’s wafer fabrication and packaging volumes soared in 2024. In addition, the Company customer prices rebounded in the face of more normalized capital expenditures. The Company maintains a near-monopoly in the fabrication of nearly every new AI accelerator brought to market over the past two years. They continue investing tens of billions to build and 7ill future capacity with orders for what seems to be insatiable hyperscale demand for accelerated computing. The stock ended the year trading at a consensus forward earnings multiple that is several points lower than large-cap growth benchmarks, despite the Company’s dominant position in the most important industry that is driving one of the largest technological shifts in a generation.”