5 Stocks Billionaire Tiger Cub Rob Citrone is Buying

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

Value of Discovery Capital Management‘s 13F Position: $15.7 million

Number of Hedge Fund Shareholders: 83

Discovery Capital added a new stake of 150,480 shares of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) to its 13F portfolio during Q1, being one of several hedge funds to go long the chipmaker during the quarter. Hedge fund ownership of TSM hit an all-time high during Q1 and is up by 24% over the past three quarters.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) shares are down by 41% this year but got a boost on July 7 when rival Samsung reported better than expected results that were heavily boosted by its chip sales. That proved to be a sigh of relief for chip companies and their investors, who just a week earlier were hit with weak forward guidance from Micron Technology (NASDAQ:MU), which cited weakening consumer demand.

The Baron New Asia Fund believes Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) will not only meet, but exceed its 15 to 20% revenue growth targets for the coming years, saying this about the company 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.”