20 High Growth Mega Cap Stocks You Can Buy And Hold For Next 5 Years

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

Taiwan Semiconductor Manufacturing Company Limited is a manufacturer, tester, packager, and supplier of ICs and other semiconductor devices. It offers various wafer fabrication processes and customers, manufactures masks, engineering support services, and other products and services. The company has grown its revenue by 22.25% over the last 5 year.

TSM is a leader in semiconductor manufacturing. If there is demand for semiconductor chips, TSM will benefit. Intel’s manufacturing debacle also shows that TSM has a moat and running a foundry isn’t everyone’s cup of tea. With such a strong moat, the stock would be part of any long-term portfolio.

Some investors worry about geo-political tensions weighing down on the stock. These fears are justified. However, TSM is increasing its presence in the US and has the US government’s support in doing so. In fact, it is one of the favorites to acquire Intel’s manufacturing segment, something that will help it diversify its manufacturing footprint outside Taiwan and hence out of the reach of any Chinese influence.

The stock trades at a forward PE of just under 20. The valuation is low compared to peers with a significantly smaller moat. If investors can keep the political concerns aside, this has the potential to be one of the best investments for the next 5 years.