1. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 67
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) makes and sells semiconductor products. It is the biggest chipmaker in the world and as the demand for EVs rises, so will the demand for high-end chips, like those made by Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). While other chip makers around the world play catch-up, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is already well-positioned to take advantage of a boom in chip prices as supply chain problems persist.
Hedge funds are also bullish on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as 2022 begins. At the end of the third quarter of 2021, 67 hedge funds in the database of Insider Monkey held stakes worth $9.5 billion in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), up from 64 in the preceding quarter worth $10 billion.
In its Q1 2021 investor letter, Bonsai Partners, an asset management firm, highlighted a few stocks and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was one of them. Here is what the fund said:
“Taiwan Semiconductor is the world’s largest outsourced foundry of logic semiconductor chips. TSMC’s shares appreciated 8.9% during the quarter.
Similar to last quarter, the supply-demand imbalance in semiconductor chips continues to benefit TSMC. To fuel new technological advances and meet the current supply imbalance, we see significantly increased capital spending across the industry over the coming years.
TSMC has an extraordinary track record of return on these large investments despite their rapid historical cadence of expansion. I remain hopeful that the large capital expenditure plan they now have ($100 billion of investment over the next three years) will be money well spent and not lead to industry oversupply in the medium term. Hopefully, future returns on these investments will look as good as those of the past.”
You can also take a peek at 10 Stocks That Benefit from Global Chip Shortage and 10 Fintech Stocks Redditors are Buying.
