15 Most Promising Technology Stocks to Buy Now

2. Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)

Number of Hedge Funds: 158

Potential Upside: 26%

Taiwan Semiconductor Manufacturing Company (NYSE:TSM) is the world’s largest and most advanced semiconductor foundry. As opposed to the integrated device manufacturers (IDMs) such as Intel, TSMC operates exclusively as a pure-play foundry, and does not design its own chips but focuses on high-performance semiconductor fabrication. It plays a crucial role in the global technology supply chain by manufacturing chips for major companies, including Apple, NVIDIA, AMD, and Qualcomm.

With its deep technological prowess, Taiwan Semiconductor Manufacturing Company (NYSE:TSM) generally finds itself at the center of the news flow related to semiconductor manufacturing. On February 15, Bloomberg reported that the company is considering acquiring Intel Corp. (NASDAQ:INTC)’s U.S. manufacturing facilities. This development comes after officials from the Trump administration proposed the idea to Taiwan Semiconductor Manufacturing Company (NYSE:TSM) to bolster American manufacturing capabilities. However, another report from Reuters suggests that some officials suggest that the administration has expressed reservations about a foreign entity operating Intel Corp. (NASDAQ:INTC)’s U.S. factory. These discussions are in preliminary stages, and no formal agreements have been reached. Similar speculation of Intel’s breakup into parts and spin-offs has also been doing the rounds amid which Intel’s share price has rallied 24% in one week.

Taiwan Semiconductor Manufacturing Company (NYSE:TSM) leads in process technology, being the first to mass-produce 3nm chips and investing heavily in 2nm and beyond. As demand for AI, high-performance computing (HPC), and advanced mobile processors grows, TSMC is well-positioned to capitalize on the industry’s shift to smaller, more efficient, and more powerful chips. The company is a consensus buy with an upside potential of around 26%. On January 17, Barclays raised their price target to $255 from $240 and reiterated their Overweight rating on the shares basing their positive view on expected growth from AI.