8 Most Profitable Tech Stocks Right Now

4. Taiwan Semiconductor Manufacturing Company (NYSE:TSM)  

Number of Hedge Fund Holders: 156  

TTM Net Income: $29.90 Billion  

5-Year Net Income CAGR: 22.90%

Taiwan Semiconductor Manufacturing Company (NYSE:TSM) is the world’s largest independent semiconductor company which plays a critical role in the global tech supply chain by powering everything from smartphones to data centers. The company produces chips for many leading global companies, including Apple, AMD, and NVIDIA. Its cutting-edge technology, especially in advanced process nodes has solidified its role in high-performance computing and AI applications

Taiwan Semiconductor Manufacturing Company (NYSE:TSM) has a market share of almost 30%. The company’s advanced 2nm, 3nm, 5nm, and 7nm technologies have enabled it to maintain its position as a top player in the industry. The company’s latest developments in 2nm and A16 process technologies are expected to further solidify its market leadership.

Its A16 manufacturing process, announced in April 2024, is best suited for high-performance computing with a complex signal route and dense power delivery network, with mass production scheduled for the second half of 2026. These advancements in 1.6nm and 2nm process technologies will provide a significant boost to the company’s growth, particularly in the AI and large machine learning tasks segment.

Taiwan Semiconductor Manufacturing Company’s (NYSE:TSM) 2nm (N2) process technology which offers a 10% to 15% speed improvement at the same power, or 25% to 30% power improvement at the same speed, and more than 15% chip density increase compared to 3 nm chips are expected to surpass both 3nm and 5nm sales in their respective initial two-year periods, with volume production on track for 2025.

Additionally, the company’s capacity utilization is expected to rise in the second half of FY24, driven by growing demands for sub-7nm process technologies. This improvement in utilization will benefit the company’s near-term growth and expand its gross margins.

Taiwan Semiconductor Manufacturing Company’s (NYSE:TSM) advancements in 1.6nm and 2nm process technologies give it a competitive edge. The company’s market leadership in the most advanced process technology below 7nm is expected to continue, analysts forecast the company to grow its earnings by 23.61% this year.