Hedge Funds are Buying These 5 Semiconductor Stocks in 2022

3) Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Number of Hedge Fund Holders: 81

The Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest contract chip manufacturer. Its business model involves the company taking designs from chip firms such as Advanced Micro Devices, Inc. (NASDAQ:AMD) and manufacturing the semiconductors. The firm is based out of Taiwan, as its name suggests.

Looking at the current state of the semiconductor industry, the Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is currently one of the three in the world that are capable of manufacturing semiconductors with leading edge processes that are capable of printing circuits as small as 5-nanometers (nm) in width. The company is also setting up a chip fabrication in the U.S. that is expected to be operational by 2024. Insider Monkey scanned 912 hedge fund holdings in Q1 2022 to discover that 81 had bought a stake in the company.

The Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) posted $17.6 billion in revenue and $1.40 in non-GAAP EPS for its first fiscal quarter in a strong set of results that saw it beat analyst estimates for both. Morgan Stanley kept a NT$780 share price target for the company in April 2022, successfully predicting that the company will beat estimates despite a semiconductor slowdown.

Ken Fisher’s Fisher Asset Management is the Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s largest investor. It has a $2.7 billion stake that comes through 26 million shares.