5 EV Materials Stocks to Invest In

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

Number of Hedge Fund Holders: 72  

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures, tests, and sells integrated circuits and other semiconductor devices. The company is one of the premier chip manufacturers in the world and has gained increased importance on the back of a US-China trade war over chips. The company controls the first foundry to provide 7-nanometre and 5-nanometre chip production capabilities. These small chips are integral to the overall functioning of electric vehicles. 

On July 14, Susquehanna analyst Mehdi Hosseini maintained a Neutral rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock and lowered the price target to $88 from $90, noting that the stronger revenues of the firm in 2022 make the 2023 numbers more challenging. 

At the end of the second quarter of 2022, 72 hedge funds in the database of Insider Monkey held stakes worth $9.2 billion in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), compared to 81 in the preceding quarter worth $10 billion. 

In its Q2 2022 investor letter, Mercator International Opportunity fund, an asset management firm, highlighted a few stocks and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was one of them. Here is what the fund said:

“Another example of this buyers’ strike is Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)  (1.81%), down 40% from its high and trading at less than 15 times forward earnings. When TSM announced better-than-expected earnings growth of 67% in the second quarter with no slowdown in sight, the stock barely gained a few percentage points. No matter how good the news, buyers are not showing up. Yet.”