5 Hot Growth Stocks To Buy Now

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

Revenue Growth Rate over Last 12 Months: 42.61%
3 months return: 50.22%
Number of Hedge Fund Holders: 87

The chipmaking company, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), has generated 16.11% returns in the past month. Comparing the 14.06x P/E ratio of TSM to the significantly larger multiples of its peer group, this ratio is appealing. Nvidia (NASDAQ:NVDA) is trading at 57.96x, while Advanced Micro Devices (NASDAQ:AMD) is trading at 101.85x.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is diversifying and boosting production internationally to ease worries about future supply-chain challenges and the geopolitical danger from China’s invasion of Taiwan. For instance, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is doubling, or more than tripling, the amount it will invest in its new manufacturing in Arizona. Once fully operational, it is projected that the new chip factory will generate $10 billion in revenue. 

Based on 5 buy ratings, 1 hold rating, and 0 sell ratings, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has a consensus rating of ‘Strong Buy.’ At the end of Q3 2022, 87 hedge funds held stakes in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). The total value of these stakes was estimated at $13.24 billion. As of December 31, Cantillon Capital Management is the dominant investor in the company and has a position worth $242.11 billion.

Here is what Baron Funds had to say about Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its third-quarter 2022 investor letter:

“Semiconductor giant Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) detracted from performance due to the global macroeconomic slowdown and softening demand for consumer electronics. We retain conviction that Taiwan Semi’s technological leadership, pricing power, and exposure to secular growth markets, including high-performance computing, automotive, and IoT, will allow the company to deliver strong revenue growth over the next several years.”