Jim Cramer Suggests ‘Gunboat Diplomacy’ For China & Discusses These 7 Stocks

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

Number of Hedge Fund Holders In Q4 2024: 186

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest contract chip manufacturer. Its dominant position in the market is due to the firm’s leading-edge manufacturing process technologies and the ability to handle sizable orders. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s shares are down by 24% year-to-date as they have fluctuated in response to investor attitudes towards global trade tensions and AI chip demand. Cramer, however, was left impressed by the firm’s latest earnings call:

“I do know that if you watched Taiwan Semi last week, NVIDIA’s still very much in the driver’s seat. By the way, the Taiwan Semi call was so spectacular that I came away thinking that Microsoft, instead of being, a downgrade Microsoft there by Jackson Ader over a. . . But I felt that when I finished the Taiwan Semi, and of course its subrose that Taiwan to NVIDIA. Not Intel by the way, that was all just false nonsense.”

“. . .Because when you listen to Taiwan Semi, it’s like, nothing ever happened that’s negative. It’s so positive.”

“Okay so Taiwan Semi’s saying that demand for AI chips is accelerating. And that everybody has to have them. And there isn’t anyone who doesn’t want them.”

“[On leaving full year guide unchanged] But it’s the mix. It’s the mix. Cause cellphones are bad, and AI, it’s absolutely true. But when you talk about high-performance computing, which is NVIDIA, that was off the charts great. And so was Arizona. I think you gotta hand it to the people in Arizona. They have been able to build in a way that you don’t think America could do.”