Billionaire Prem Watsa’s Top 15 Long-Term Stock Picks

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

Number of Hedge Fund Holders: 158  

Fairfax Financial Holdings’ Stake: $24.6 million 

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) makes and sells integrated circuits and semiconductors. The first quality that makes this company worth investment is its robust financial growth, as illustrated in the report for the third quarter of 2024. For instance, a 39% increase in revenue year-over-year, reaching NT $759.69 billion, and a 54.2% rise in net income was reported. The company attributes its growth to robust demand for its advanced 3-nanometer and 5-nanometer technologies, driven by smartphone and AI-related markets. TSMC’s impressive financial performance underscores its leadership in the semiconductor industry, making it an attractive prospect for investors. Secondly, the US Department of Commerce and TSMC Arizona announced up to $6.6 billion in direct funding under the CHIPS and Science Act, fulfilling a goal to bring the most advanced chip manufacturing in the world to the United States. TSMC also announced plans to build a third fab at TSMC Arizona. This third fab brings TSMC’s total US investment to more than $65 billion, making this the largest foreign direct investment (FDI) in Arizona’s history and the largest FDI in a greenfield project in US history.