18 Trending AI Stocks on Latest Analyst Ratings and News

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

Number of Hedge Fund Holders: 156  

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) makes and sells integrated circuits and semiconductors. The firm derives a competitive advantage in the chip space through technological dominance and economies of scale. For example, the company plans nearly $32 billion in capex for 2024. The figure is around $5 billion more than Intel, a key rival of TSM, spent on capex in 2023. The capex will go towards increasing the technological and manufacturing superiority of the firm in the chip world as AI demand takes off. The firm derives a large portion of revenue from the sale of advanced technology chips. This process, virtually monopolized by TSM, makes chips with a size of 7 nanometers and below.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the favorite AI stocks among Wall Street analysts. Bank of America recently raised the price target on TSM to NT$1,200 from NT$1,160 and kept a Buy rating on the shares, highlighting that it had lifted 2024-26 earnings forecasts for the firm by 3%-5% to reflect stronger results, a better Q3 margin outlook, and tighter-than-expected CoWoS/N3/N5 supply into 2026.

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