8 Good Stocks To Buy Right Now

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

Number of Hedge Fund Holders: 156

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a semiconductor company that makes chips for technology giants like NVIDIA and AMD. It ranks third on our list.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is expanding its presence across the world, especially in Europe. In addition to that, the company has huge bets on artificial intelligence. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) expects revenue from AI chips to increase at a compound annual growth rate (CAGR) of 50% by 2027.

On October 14, Reuters reported that the company is expected to report a 40% increase in revenue in FQ3 2024, due to soaring demand for AI and AI products. Analysts polled by Reuters expect third-quarter revenue to reach $9.27 billion.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) benefits from its partnerships with Nvidia, AMD, Qualcomm, and Apple. However, this is not the only thing that sets it apart from its competitors. TSMC owns cutting-edge technology to exploit the demand for AI chips. The AI chip market is expected to grow at a compound annual growth rate of 38% through 2032, and TSMC is on track to exploit it.

Diamond Hill Capital stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q2 2024 investor letter:

“On an individual holdings’ basis, top contributors to return in Q2 included our long positions in Alphabet, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and Microsoft. Semiconductor manufacturer Taiwan Semiconductor’s (TSMC) fundamentals remain solid as demand for its chips continues growing — particularly as the machine learning and cloud computing trends gain more traction.”