We recently published a list of Billionaire Stephen Mandel’s 10 Stocks with Huge Upside Potential. In this article, we are going to take a look at where Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stands against other billionaire Stephen Mandel’s stocks with huge upside potential.
With economic policy and trade tensions fueling volatility, investors are moving through one of the most unpredictable markets in recent times. The Federal Reserve has taken a wait-and-see stand and maintains elevated interest rates to control inflation. In a CNBC report, the Fed commented that a rate cut could happen as early as June if economic conditions declined further. Such monetary easing would make the stock prices go up, with some companies even outperforming their peers in the market.
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The possibility of falling rates is a big deal for investors. Lower interest rates have often led to higher equity valuations, making borrowing cheaper and compressing discount rates applied to future earnings. Various stocks, irrespective of their sector, have historically shown strong rebounds during previous periods of rate cuts. Seasoned investors like billionaire Chase Coleman have also observed similar patterns. Leading the charge among them is growth stocks.
In addition to the renewed trade conflicts under President Trump’s tariff policies, the looming uncertainties are thickening with inflation getting closer to the Federal Reserve’s 2% target. Under these circumstances, having understood the potential of a confirmed pivot from the Fed on loosening the monetary policy, the investors are keeping a close watch on their moves since it would also inevitably benefit stocks with substantial upside potential.
But isn’t betting on short-term moves risky? Of course, it is. However, as reported on CNBC, the market indices suffered a sharp 12% correction earlier this month but staged a quick comeback. Those who panicked and sold at the lows are now regretting their decisions. This episode raises the importance of maintaining discipline and a long-term view when making investment decisions.
Setting aside the turbulence, historical data could be used to understand the importance of equities in wealth accumulation. Between 1926 and 2024, the U.S. stocks surpassed the Treasury bills by providing an annual return of 10.2%, which exceeded the Treasury’s 3.3%. To benefit from such an edge, the investors must endure through volatility and understand that 10% to 20% declines are part of the game.
In this economic landscape, investors should follow the billionaire investors. Using their knowledge about the market and companies and by conducting extensive research, some billionaire investors like Andreas Halvorsen have made investment decisions, stuck to them, and benefited immensely. Similarly, with his strategically positioned portfolios, one of the most prominent billionaire investors, philanthropists, and the founder of Lone Pine Capital, Stephen Mandel, guides other investors to capture outsized returns without reacting impulsively to market noise.
In this regard, growth stocks remain an attractive investment even during this current period of uncertainty. To those who want to refine their portfolio, the stocks that have managed to gain the attention of billionaire Stephen Mandel present great potential. To help you pick the best out of the best, we have compiled a list of 10 stocks from billionaire Stephen Mandel’s portfolio and ranked them, too.
Our Methodology:
Several criteria have been employed when compiling our list of billionaire Stephen Mandel’s 10 stocks with huge upside potential. All the stocks in our list are primarily part of Stephen Mandel’s Lone Pine Capital private equity firm’s portfolio. Following this crucial criterion, we looked for stocks with a high percentage holding in the portfolio. It is to ensure that the article covers the top picks from the billionaire investor. We also looked at the upside potential of the stocks since they represent the future appreciation value of the investors’ capital. We have used this upside potential to rank our picks as well. All the data in the article was taken from financial databases and analyst reports, with all information updated as of April 27, 2025.
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)
% holding in portfolio: 0.07%
Upside Potential: 33.86%
The world’s largest dedicated semiconductor foundry, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), produces chips for major tech companies. The company specializes in advanced manufacturing nodes in Taiwan, including 3nm and 5nm technologies. Samsung and Intel pose tough competition in the global market, but with technological leadership, superior yield management, and a pure-play foundry model, the company gains a competitive edge. In addition to high-performance computing, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) dominates the automotive and mobile markets with technological innovation.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) represents 0.07% of Stephen Mandel’s portfolio. Though ranked lowest on our list, the percentage holding suggests a cautious but strategic positioning. The demand for the company’s 3nm and 5nm technologies has increased its net revenue for the fourth quarter of 2024 by 14.3%. Though the company anticipates a 5.5% decline in revenue in the first quarter of 2025 owing to smartphone seasonality, sales are projected to pick up mid-year, causing a 38% year-over-year increase at the end of the second quarter.
Despite the small stake, the substantial 33.86% upside potential marks Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as a sleeper among the best billionaire stocks.
Overall, TSM ranks 10th on our list of billionaire Stephen Mandel’s stocks with huge upside potential. 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks have lost around 25%. If you are looking for an AI stock that is more promising than TSM but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.