Billionaire Prem Watsa’s 10 Stock Picks With Highest Potential

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

Number of Hedge Fund Holders: 186

Fairfax Financial Holdings’ Stake: $27.99 Million

Analysts’ Upside Potential as of April 21: 49.08%

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a semiconductor foundry that offers advanced manufacturing processes and a comprehensive portfolio of technologies. Consequently, it manufactures chips for other companies, including Apple, Intel, Qualcomm, and Nvidia. It is one of billionaire Prem Watsa’s top stock picks in the tech sector, offering exposure to the burgeoning artificial intelligence landscape. While the stock is down by about 24% year to date amid the broader stock market rout, the average consensus price target indicates the stock could rally by about 49%.

On April 17, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) delivered better-than-expected first-quarter 2025 results, affirming it benefits from the artificial intelligence boom. Revenue in the quarter was up 41.6% year-over-year to NT$839.25 billion as diluted earnings per share increased 60.4% to $2.12, with net income increasing 60.3% to NT$361.56 billion. Taiwan Semiconductor expects its full-year revenue to grow close to mid-20% amid the continued AI development.

Needham reiterated a Strong Buy on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) with a $225 price target buoyed by the company’s strong fundamentals despite demand and tariff concerns. Management reiterated strong business in the second quarter, attributed to strong demands for the industry-leading 3nm and 5nm technologies. Additionally, Taiwan Semiconductor has refuted claims that it’s negotiating a potential tie-up with ailing chipmaker Intel.