Top 10 Buzzing AI Stocks to Watch Now

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

Number of Hedge Fund Investors: 186

Glen Kacher, Lights Street Capital founder, said in a latest program on CNBC that he is still bullish on the top “AI 5” semiconductor companies which include Taiwan Semiconductor (NYSE:TSM). Here is how he made his case for these companies:

“There’s nothing in the technology pipeline right now that can match the innovation of generative AI. Generative AI creates a customized answer for the user based on underlying data, and this is a brand new method of computing. It’s created a massive investment cycle, over $200 billion a year of capital expenditures, and it’s growing in order to deliver on what is just an incredible technology, unlike anything else we’ve seen in my lifetime, certainly. If you look back to the DeepSeek scare, a month or two earlier we were worried that things weren’t scaling, and then we saw a big scaling event. Now, everyone’s scared that we’re scaling too much.”

Wedgewood Partners stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q4 2024 investor letter:

“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was another top contributor to performance during the quarter and for the year. The Company’s earnings growth dramatically accelerated compared to last year as the Company’s wafer fabrication and packaging volumes soared in 2024. In addition, the Company customer prices rebounded in the face of more normalized capital expenditures. The Company maintains a near-monopoly in the fabrication of nearly every new AI accelerator brought to market over the past two years. They continue investing tens of billions to build and 7ill future capacity with orders for what seems to be insatiable hyperscale demand for accelerated computing. The stock ended the year trading at a consensus forward earnings multiple that is several points lower than large cap growth benchmarks, despite the Company’s dominant position in the most important industry that is driving one of the largest technological shifts in a generation.”