Guinness Global Innovators, an investment management company, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund generated a total return of 21.9% (TR in GBP) in 2024, compared to the MSCI World Net TR Index return of 20.8%. 2024 turned out to be yet another successful year for stocks. For the first time since the 1990s, the S&P 500 has now produced two years in a row with returns of more than 20% (USD). Against a complex backdrop of shifting monetary policy, geopolitical instability, and disparate regional economic performance, global equities markets produced strong returns. To get an idea of the fund’s best choices for 2024, check out its top 5 positions.
In its fourth quarter 2024 investor letter, Guinness Global Innovators emphasized stocks such as Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures, packages, tests, and sells integrated circuits and other semiconductor devices. The one-month return of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was -7.79%, and its shares lost 26.03% of their value over the last 52 weeks. On March 21, 2025, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock closed at $176.73 per share with a market capitalization of $916.619 billion.
Guinness Global Innovators stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q4 2024 investor letter:
“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) performed well over 2024, gaining +92.6% (USD). The world’s largest fab saw strong performance given its ongoing strategic importance in the global semiconductor supply chain. As a leader in advanced node manufacturing, TSMC continued to showcase its unmatched expertise in producing chips at cutting edge process nodes, including 3nm and beyond. The firm significantly benefited from surging demand for AI and high-performance computing (HPC), both of which rely heavily on advanced microchips. Following a challenging 2023 marked by a cyclical industry downturn, TSMC returned to strong growth, with annual revenues up 34% YoY to its highest ever level. Furthermore, higher fab utilisation rates throughout the year and cost-cutting efforts contributed to rising operating margins, further reinforcing the company’s solid financial position. TSMC also made aggressive investments in expanding its CoWoS (Chip-on-Wafer-on-Substrate) capacity in 2024, positioning itself to double capacity again in 2025 in response to the growing need for advanced packaging solutions. Alongside their dominance in advanced-node manufacturing, TSMC’s CoWoS 2.5D and SoIC 3D packaging technologies have emerged as essential components for next generation AI chip production in data centres. These cutting-edge packaging solutions highlight TSMC’s promising outlook as a pivotal driver of innovation in data centre infrastructure and high-performance computing.”
A close-up of a complex network of integrated circuits used in logic semiconductors.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is in 9th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 186 hedge fund portfolios held Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) at the end of the fourth quarter compared to 158 in the third quarter. The fourth quarter revenue of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) increased 14.3% sequentially in NT. While we acknowledge the potential of Taiwan Semiconductor Manufacturing Company Limited (NYSE: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 as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and shared Philippe Laffont’s top stock picks. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.