Top 10 Stocks to Buy According to Balyasny Asset Management

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

Number of Hedge Fund Holders as of Q4: 186

Balyasny Asset Management’s Equity Stake: $434.83 Million 

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a leading semiconductor manufacturer based in Taiwan. The company is responsible for producing approximately 90% of the world’s most advanced semiconductor chips, which power devices such as smartphones, servers, and laptops. These chips are also essential for running artificial intelligence applications, making TSMC a critical player in the AI-driven technological landscape. With its role as a key supplier to major companies like Nvidia and Apple, TSMC continues to strengthen its position as the world’s largest contract chip manufacturer.

In its latest financial report, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) exceeded market expectations for both revenue and profit in the fourth quarter. The company reported net revenue of NT$868.46 billion ($26.36 billion), surpassing analysts’ forecasts of NT$850.08 billion. Net income also came in higher than expected at NT$374.68 billion, marking a 57% year-over-year increase, while revenue saw a substantial 38.8% jump. The company’s high-performance computing (HPC) division, which includes AI and 5G-related applications, was the primary growth driver, contributing 53% of total revenue.

TSMC’s leadership has expressed confidence in continued AI-driven growth, with Chairman and CEO C.C. Wei noting that revenue from AI accelerator products accounted for a mid-teens percentage of total revenue in 2024. He further projected that AI-related revenue would double in 2025, given the increasing adoption of AI technologies across various industries. Despite these positive forecasts, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) faces potential challenges in 2025, including U.S. restrictions on advanced semiconductor shipments to China and potential shifts in trade policy under the incoming administration of President-elect Donald Trump.

Despite external challenges, market analysts remain optimistic about TSMC’s growth prospects. In 2024, TSMC’s Taiwan-listed shares surged 81%, and the stock continued its upward momentum, rising 3.75% in early 2025 trading. With its dominant market position, strategic partnerships, and commitment to innovation, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is well-positioned to maintain its leadership in the semiconductor industry and capitalize on the expanding AI revolution.