5 Semiconductor Stocks to Buy Now

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

Number of Hedge Fund Holders: 81

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) designs and sells integrated circuits and related semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, and the United States. On July 8, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) posted net revenue of approximately NT$175.87 billion for June 2022, reflecting an 18.5% year over year growth. Consolidated revenue from January to June 2022 totaled NT$1,025.22 billion, representing a 39.6% increase compared to the same period last year. 

Loop Capital analyst Charles Park initiated coverage of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) on June 21 with a Buy rating and a NT$600 price target. The analyst is optimistic about the company’s role as the market leader in the long-term structural growth due to “ubiquitous” computing and a range of emerging technology such as 5G, IoT, and AI/ML/Cloud. 

Among the hedge funds tracked by Insider Monkey, 81 funds were bullish on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) at the end of Q1 2022, up from 72 funds in the earlier quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is one of the leading shareholders of the company, with more than 9 million shares worth $945 million. 

Here is what Baron New Asia Fund has to say about Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q1 2022 investor letter:

“Semiconductor giant Taiwan Semiconductor Manufacturing Company Ltd. detracted in the first quarter due to rising geopolitical tensions, macroeconomic uncertainties, and concerns over 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 above its 15% to 20% revenue growth target over the next several years.”