We recently published a list of Ken Fisher Stock Portfolio: Top 10 Stock Picks. In this article, we are going to take a look at where Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stands against other stock picks from Ken Fisher’s portfolio.
Ken Fisher is an American billionaire investment analyst and founder of Fisher Investments, a renowned money management firm in the financial world with over 170,000 clients globally and assets of $299 billion as of the end of 2024.
READ ALSO: 12 Best Long-Term Stocks to Buy According to Ken Fisher and Billionaire Ken Fisher’s Top 10 High Growth Stock Picks.
Ken Fisher’s Investment Philosophy and Strategies
He founded Fisher Investments in 1979 and managed to grow it to big proportions through aggressive advertisements. It is one of the most advertised investment advisors in the country, with the company reaching out directly to clients and prospects to promote its products.
Another factor that has significantly contributed to the firm’s growth is that it targets high net worth individuals for investments. The company also has a positive reputation in the market for retaining portfolio management talent, which is evident from its low turnover compared to other companies in the industry, and has helped the firm have a continuity of policies and strategies.
The firm’s investment philosophy is based on Fisher’s fundamental belief in capitalism and free markets, where demand and supply determine the prices of securities. It also has a firm reliance on market research and metrics such as price-to-sales ratio to find undervalued growth stocks.
Fisher stepped down as CEO in 2016, but still has an active role to play in the firm as its Executive Chairman and Co-Chief Investment Officer. Moreover, his influence on financial markets extends well beyond asset management as he is an author of 11 books, four of which became best-sellers. The billionaire has also published many papers and is a columnist for several notable newspapers and magazines.
Recent Developments
In January this year, Fisher Investments announced that Advent International, a wholly owned subsidiary of the Abu Dhabi Investment Authority, had completed a $3 billion minority stock investment in the firm. The transaction values Fisher Investments at $12.75 billion. The strategic partnership is part of Ken Fisher’s long-term estate planning, and will ensure that the firm maintains its private independence and commitment to exceptional client service.
While Trump’s tariffs have sent shockwaves through the markets, Fisher Investments is confident about the long-term outlook. Here is what the firm stated on its weekly website series, This Week in Review:
“While more downside is possible, we think the biggest risk for investors is making any knee jerk decisions amid fast moving tariff news. Market volatility can feel unsettling. However, selling stocks during a downturn can lead to missing out on gains if the market rebounds, which we believe will happen this year.”
Methodology
We scanned Fisher Asset Management’s 13F portfolio, as of December 31, 2024. From there, we picked the top 10 stocks according to their stake value and ranked them in ascending order. ETFs have been excluded from our list.
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)
Stake Value as of Q4 2024: $5,599,226,818
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a semiconductor design and manufacturing foundry based in Taiwan. According to a CNN report, the company produces around 90% of the world’s super-advanced semiconductor chips used to power electronic devices such as smartphones, servers, and laptops. These chips are also used to run most artificial intelligence applications.
Last week, the company announced that it intends to expand investment in the United States by an additional $100 billion, building on the ongoing $65 billion investments in its manufacturing operations in Phoenix, Arizona. The plan includes three new fabrication plants, two advanced packaging facilities, and an R&D team center.
On March 10, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) declared its revenue report for February 2025. Revenue for the month totalled NT$260.01 billion, up 43.1% year-over-year. Revenue for the first two months of 2025 stood at approximately NT$553.30 billion, representing a 39.2% increase compared to the corresponding period last year.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is continuing to see robust demand for chips used in AI applications. Wall Street analysts are bullish on the stock, with a consensus Strong Buy rating and an average share price upside potential of 35%.
According to Insider Monkey’s database for Q4 2024, 186 hedge funds held a stake in the company, up from 158 at the end of the third quarter. It is among the top picks from the Ken Fisher stock portfolio.
Overall, TSM ranks 6th on our list of stock picks from Ken Fisher’s portfolio. While we acknowledge the potential of technology 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. 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.
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.
