10 Best Stocks to Buy and Hold For the Next 5 Years

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​6. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Number of Hedge Fund Holders: 224

​Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) topped consensus estimates during fiscal Q1 2026 earnings, released on April 16. Wall Street has been bullish on the stock ever since, as 98% of the 51 analysts covering the stock have a Buy rating. Moreover, the 12-month average price target suggests more than 22% upside from the current level. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is also one of our Best Stocks to Buy and Hold For the Next 5 Years.

​During the quarter, the company posted $35.9 billion in revenue, reflecting more than 39.2% year-over-year growth and topping estimates by $404.52 million. Moreover, the EPS of $3.49 also topped $0.16. Management noted that the growth was driven by strong demand for 3-nanometer technology and high capacity utilization across all factories.

​The 3-nanometer technology accounted for 25% of wafer revenue during the quarter. The company also provided a positive outlook for Q2 2026. The company projects revenue between $39.0 billion and $40.2 billion, representing a 10% sequential increase.

​Recently, on April 17, DA Davidson reiterated a Buy rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) with a price target of $450. The firm noted strong fiscal Q1 results and an encouraging Q2 outlook as key factors behind the optimistic rating.

​Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures and sells advanced chips used in artificial intelligence applications.

While we acknowledge the potential of TSM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TSM and that has 100x upside potential, check out our report about the cheapest AI stock.

Click to continue reading and see the 5 Best Stocks to Buy and Hold For the Next 5 Years.

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