We recently published a list of Top 12 Tech Stocks to Buy According to Billionaire Ken Fisher. In this article, we are going to take a look at where Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stands against other top tech stocks to buy according to billionaire Ken Fisher.
Under the umbrella of Fisher Asset Management, Billionaire Ken Fisher has maintained a positive stance on technology stocks, particularly those within the “Magnificent Seven.” While emphasizing the strong performance of these large-cap growth companies, Fisher emphasizes that the ongoing bull market extends beyond just these high-profile names. According to him, the 2024 rally has been broader than it is generally perceived, with growth stocks, especially in tech and communication services, consistently outperforming their value and small-cap counterparts.
Ken Fisher’s discussion revealed a notable trend: tech stocks have tended to outperform during market upswings and underperform during downturns. This pattern, evident throughout the statistics of 2024, strengthens the theory that if investors believe in a continuing bull market, technology stocks will likely remain strong performers. Although they may not always lead the market consistently or across every metric, according to historical evidence, their overall performance consistently outshines most other sectors and groupings.
Fisher’s perspective suggested that while technology stocks may not dominate the market indefinitely, their performance still serves as a bellwether for broader market sentiment. He stated that investing in these companies is not about expecting perfection but recognizing that in bullish environments, they tend to deliver higher returns. At the same time, he warned against focusing too narrowly on these names, as the broader growth category spanning across sectors is also poised to benefit from favorable market conditions.
In summary, Fisher Asset Management’s investment approach shows confidence in the long-term prospects of technology stocks. Though Ken Fisher concedes there are no certainties in the market, he points to a clear directional relationship: when the market rises, these stocks tend to rise more; when it falls, they decline more. For Fisher, this reinforces the strategic value of maintaining strong exposure to tech-driven growth stocks in a bullish environment.
Our Methodology
We searched through Fisher Asset Management’s Q4 2024 13F filings to identify the top tech stocks that the firm is invested in. From the resultant data, we ranked the technology equities based on his hedge fund’s stake value in each holding. Additionally, we have mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close-up of a complex network of integrated circuits used in logic semiconductors.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders as of Q4: 186
Fisher Asset Management’s Equity Stake: $5.60 Billion
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest contract chip manufacturer and a significant part of the global semiconductor supply chain. The company is responsible for producing approximately 90% of the world’s most advanced semiconductor chips, which are used in products like smartphones, laptops, and servers. These high-performance chips are essential for running artificial intelligence applications, making TSMC a critical enabler of the AI revolution. A key supplier to tech giants such as Nvidia and Apple, TSMC continues to play a vital role in shaping the future of technology.
In its most recent financial report, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) exceeded market expectations for both revenue and profit during the fourth quarter of 2024. The company reported a net revenue of NT$868.46 billion (approximately $26.36 billion), surpassing analysts’ projections of NT$850.08 billion. Net income reached NT$374.68 billion, reflecting a remarkable 57% increase compared to the same period the previous year. Revenue also rose significantly, with a 38.8% year-over-year gain. The primary driver of this growth was TSMC’s high-performance computing (HPC) division, which encompasses AI and 5G-related applications and contributed 53% of the company’s total revenue.
Chairman and CEO C.C. Wei has expressed strong confidence in the company’s AI growth trajectory, stating that AI accelerator products accounted for a mid-teens percentage of total revenue in 2024. He further projected that AI-related revenue would double in the fiscal year 2025, underscoring the company’s pivotal role in supporting the global adoption of AI technologies. Despite these optimistic forecasts, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) might face geopolitical headwinds. U.S. restrictions on advanced semiconductor exports to China and evolving trade policies under the incoming administration of President-elect Donald Trump could adversely impact global supply chains.
With over 28 million shares reported in its 13F holding, Ken Fisher held a stake of approximately $5.6 billion in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), making it sixth on the list of top tech stocks to buy according to the billionaire.
Sands Capital Technology Innovators Fund stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q4 2024 investor letter:
“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) third-quarter 2024 results and guidance showcased strong continued demand for artificial intelligence (AI) chips. Revenue increased by 29 percent, and earnings saw a 54 percent rise year-over-year. Gross margins were at their highest since 2022, bolstered by price hikes and record utilization at both the 3 nanometer (nm) and 5nm nodes. TSMC’s full-year revenue outlook was revised upward from 25 percent to 30 percent growth. The company also anticipates higher capital expenditure in 2025, a leading indicator for revenue.
Meanwhile, TSMC’s competitive position within the leading-edge chip fabrication industry has improved. The company noted that demand for its next-generation 2nm (N2) node is considerably higher than for its predecessor, N3. Additionally, TSMC has more capacity for N2 than N3. This situation contrasts with Intel and Samsung, which both recently disclosed struggles in ramping up their leading-edge nodes. Together, Intel and Samsung account for approximately $25 billion of foundry revenue, which could potentially migrate to TSMC over time…” (Click here to read the full text)
Overall, TSM ranks 6th on our list of top tech stocks to buy according to billionaire Ken Fisher. While we acknowledge the potential of tech companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TSM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
