$30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley

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

Number of Hedge Fund Investors  in Q1 2024: 135

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the largest contract chip manufacturer in the world. The chip manufacturing industry is one of the most capital intensive in the world, with firms like Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) investing billions of dollars each year to expand their production facilities and keep up with the pace. This means that the firm will likely maintain its dominant position in the industry for years to come except for any black swan events. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s leading edge nodes, such as its N3 and N2 nodes are at the front of the industry in terms of technology. It means that the firm will be the go to company of choice for any company that designs chips for humanoid robots. However, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s location in Taiwan remains its biggest risk as any conflict between Taiwan and China can lead to production disruptions.

ClearBridge Investments mentioned Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q2 2024 investor letter. Here is what the firm said:

“However, we added to our semiconductor positioning during the quarter with the purchase of Taiwan Semiconductor (TSM). TSM, an out-of-benchmark name, is the world’s fabrication production provider of choice. The criticality and sophistication of the company’s manufacturing footprint powers all of the leading edge fabless global semiconductor companies, including Apple, Nvidia, Qualcomm, AMD and Broadcom. While AI has driven upside in data centers, PCs and handsets are at cycle lows, positioning half of the company’s business for a recovery.”