Billionaire Ken Fisher’s Top 15 Stock Picks Heading into 2025

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

Fisher Asset Management’s Equity Stake: $4.99 Billion

Number of Hedge Funds Holding Stakes: 158

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a technology giant that dominates the advanced manufacturing of semiconductors. The company plays a crucial role in the supply chain of all leading chip companies. Consequently, it is one of the companies that have benefited the most from the outsourcing of chip production by semiconductor companies.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s competitive edge stems from its ability to invest in cutting-edge technology to manufacture the most advanced chips. Consequently, it controls about 62% of the market share as it produces chips for Advanced Micro Devices, Qualcomm, Apple, and Nvidia. The strong partnership catalyzed the company’s 28% revenue growth in the first half of 2024.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) also benefits from the growing demand for leading logic chips that power artificial intelligence models and 5G mobile networks. Strong demand for its chips using the three-nanometer semiconductor manufacturing process affirms its growth and long-term prospects. While the market for chips using 3nm technology is projected to grow from $1.4 billion in 2023 to $26.5 billion by 2032, there is a tremendous opportunity for growth.

Management says that the demand for AI server processors, including GPUs and other chips used for AI training, is skyrocketing. They expect the revenue from these chips to be more than three times higher for the whole year.