Top 10 Stocks to Watch Ahead of May

2. Taiwan Semiconductor Co Ltd (NYSE:TSM)

Number of Hedge Funds Investors: 158

Doug Clinton from Intelligence Alpha said in a recent program on Schwab Network that his AI models “like” Taiwan Semiconductor (NYSE:TSM) and explained some reasons behind his bullish view on the stock:

“The reason I think that our models like TSM is number one, you think about it from a valuation perspective. The stock has had a tough year so far, as have many chip stocks, and if you look at the forward earnings, we’re trading at about 16 times forward PE. That’s below the midpoint of the 10-year range for TSM, so valuation-wise, we’re in a reasonable place. But number two, structurally, you just think about TSM as a company and AI in general. Any chip builder who is making these leading-edge chips, they have to use TSM. There’s really no alternative, and so I think from a monopolistic standpoint, it’s a great business trading at a cheap valuation. I think it’ll be rocky from here because there’ll be more tariff news, but I still think you want to own it over a longer time period.”

Middle Coast Investing stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q1 2025 investor letter:

“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the company we own with the most obvious geopolitical risk, and we cut our position in half. I know that if Taiwan-China flares up the damage will extend much wider, but TSM would seem to be the first domino there. And it’s not as if Taiwan is having an easy time of it with the current U.S. administration.”