6. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders as of Q4: 186
Fisher Asset Management’s Equity Stake: $5.60 Billion
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest contract chip manufacturer and a significant part of the global semiconductor supply chain. The company is responsible for producing approximately 90% of the world’s most advanced semiconductor chips, which are used in products like smartphones, laptops, and servers. These high-performance chips are essential for running artificial intelligence applications, making TSMC a critical enabler of the AI revolution. A key supplier to tech giants such as Nvidia and Apple, TSMC continues to play a vital role in shaping the future of technology.
In its most recent financial report, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) exceeded market expectations for both revenue and profit during the fourth quarter of 2024. The company reported a net revenue of NT$868.46 billion (approximately $26.36 billion), surpassing analysts’ projections of NT$850.08 billion. Net income reached NT$374.68 billion, reflecting a remarkable 57% increase compared to the same period the previous year. Revenue also rose significantly, with a 38.8% year-over-year gain. The primary driver of this growth was TSMC’s high-performance computing (HPC) division, which encompasses AI and 5G-related applications and contributed 53% of the company’s total revenue.
Chairman and CEO C.C. Wei has expressed strong confidence in the company’s AI growth trajectory, stating that AI accelerator products accounted for a mid-teens percentage of total revenue in 2024. He further projected that AI-related revenue would double in the fiscal year 2025, underscoring the company’s pivotal role in supporting the global adoption of AI technologies. Despite these optimistic forecasts, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) might face geopolitical headwinds. U.S. restrictions on advanced semiconductor exports to China and evolving trade policies under the incoming administration of President-elect Donald Trump could adversely impact global supply chains.
With over 28 million shares reported in its 13F holding, Ken Fisher held a stake of approximately $5.6 billion in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), making it sixth on the list of top tech stocks to buy according to the billionaire.
Sands Capital Technology Innovators Fund stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q4 2024 investor letter:
“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) third-quarter 2024 results and guidance showcased strong continued demand for artificial intelligence (AI) chips. Revenue increased by 29 percent, and earnings saw a 54 percent rise year-over-year. Gross margins were at their highest since 2022, bolstered by price hikes and record utilization at both the 3 nanometer (nm) and 5nm nodes. TSMC’s full-year revenue outlook was revised upward from 25 percent to 30 percent growth. The company also anticipates higher capital expenditure in 2025, a leading indicator for revenue.
Meanwhile, TSMC’s competitive position within the leading-edge chip fabrication industry has improved. The company noted that demand for its next-generation 2nm (N2) node is considerably higher than for its predecessor, N3. Additionally, TSMC has more capacity for N2 than N3. This situation contrasts with Intel and Samsung, which both recently disclosed struggles in ramping up their leading-edge nodes. Together, Intel and Samsung account for approximately $25 billion of foundry revenue, which could potentially migrate to TSMC over time…” (Click here to read the full text)
