We recently compiled a list of the Billionaire Ken Fisher’s Top 15 Stock Picks Heading Into 2025. In this article, we are going to take a look at where Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stands against Ken Fisher’s other top stock picks.
Ken Fisher is the founder of Fisher Asset Management, a financial adviser that he started nearly five decades ago. The firm oversees over $240 billion from more than 150,000 private investors.
Fisher said, “I’ve gone to cash three times in my career; in 1987 before the crash, before the 1990 bear market and in the early 2000s, before the dot-com crash. But I missed the 2007-2009 bear market because I didn’t believe, and don’t believe, mortgages could cause what they are blamed for having caused.”
Besides focusing on long-term investments, Fisher also believes in spreading out investments to reduce risk. Fisher Asset Management is highly diversified, with a portfolio value of about $244 billion. While technology stocks account for 31.8% of the portfolio, the independent money management firm is also heavily invested in the services sector, accounting for 14.6% of the portfolio. Other significant holdings are in the financial services, healthcare, and basic materials sectors.
In the past year, Fisher’s firm made a 32.18% return, mainly because it invested a lot in tech stocks, especially those benefiting from the AI boom. While other managers are selling tech stocks due to high valuations, Fisher’s firm is buying more, especially in companies making AI chips.
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Even though the overall market is at all-time highs, Fisher says there’s no need to worry. He believes that just because the market is high now, it doesn’t predict the future. He expects the market to keep going up as long as the economy and other key factors get better.
“Bull markets hit new highs on an ongoing basis as soon as they have recovered from the prior bear market and hit their first all-time high in that new bull market. They keep doing that over and over again and eventually you do get another bear market and then again get another bull market. Bull markets, not always, are usually significantly bigger and longer than bear markets, significantly,” Ken Fisher said.
Ken Fisher’s portfolio is heavily invested in the “magnificent seven” stocks, based on the belief that the stocks are well poised to continue outperforming the overall market. According to Fisher, growth stocks will continue outperforming value stocks amid the prevailing economic conditions.
“If you think the market is going up, you should expect the magnificent seven to continue to do well. Will they necessarily do better than everything? No, but they never actually did. The fact is they did better as a group than most groups you could find. I think that will continue to be the case because I am optimistic on the market as a whole moving forward”, Fisher said in a video interview.
Our Methodology
We looked through Fisher Asset Management’s portfolio to find Ken Fisher’s top 15 stock picks for 2025. We focused on his biggest investments and ranked the stocks from smallest to largest based on the firm’s stake at the end of Q3 2024.
At Insider Monkey, we are obsessed with 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 275% since May 2014, beating its benchmark by 150 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)
Fisher Asset Management’s Equity Stake: $4.99 Billion
Number of Hedge Funds Holding Stakes: 158
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a technology giant that dominates the advanced manufacturing of semiconductors. The company plays a crucial role in the supply chain of all leading chip companies. Consequently, it is one of the companies that have benefited the most from the outsourcing of chip production by semiconductor companies.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s competitive edge stems from its ability to invest in cutting-edge technology to manufacture the most advanced chips. Consequently, it controls about 62% of the market share as it produces chips for Advanced Micro Devices, Qualcomm, Apple, and Nvidia. The strong partnership catalyzed the company’s 28% revenue growth in the first half of 2024.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) also benefits from the growing demand for leading logic chips that power artificial intelligence models and 5G mobile networks. Strong demand for its chips using the three-nanometer semiconductor manufacturing process affirms its growth and long-term prospects. While the market for chips using 3nm technology is projected to grow from $1.4 billion in 2023 to $26.5 billion by 2032, there is a tremendous opportunity for growth.
Management says that the demand for AI server processors, including GPUs and other chips used for AI training, is skyrocketing. They expect the revenue from these chips to be more than three times higher for the whole year.
Overall TSM ranks 6th on our list of Ken Fisher’s top stock picks heading into 2025. While we acknowledge the potential of TSM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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 the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
