10 Stocks to Buy and Sell in 2025: Top Analyst Calls

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

Number of Hedge Fund Investors: 187

Lucas Downey from MoneyFlows said in a recent program on Schwab Network that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the best AI stocks to buy on the dip.

“Taiwan Semi, great name. We’ve been very positive on this stock. I think if you wait for this one to come in a little bit, they just had tremendous guidance. So, the stock may continue to drift a little bit higher over the next coming days. But again, think big themes, big AI stalwarts in the industry. You need to be thinking about companies that are not super expensive on a forward PE basis, but these are the types of names that we’re going to be focused on, and that’s where the money is flowing.”

Longriver Partners Fund stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its second quarter 2025 investor letter:

“Underpinning all of this is one constant. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) remains the lynchpin of the AI compute stack. Every major chip, whether merchant or custom, still runs through its fabs. No other foundry comes close on yield, throughput, or consistency.

If anything, TSMC’s importance has deepened further, thanks to its own initiative and its competitors’ fumbles. In mid-2024, it unveiled its “Foundry 2.0” strategy, redefining its role beyond traditional manufacturing to include advanced packaging, testing, mask-making, and other services vital to progressing Moore’s Law as transistor density gains slow. By integrating all these aspects of chip design, TSMC can deliver better results for its customers and tie them in even closer. One expert summed it up: “TSMC’s system-level co-design is unparalleled.”

Nowhere was that shift more visible than in 2024, when TSMC’s 2.5D CoWoS packaging became a chokepoint. Nvidia’s Blackwell hit thermal limits not because of bad silicon, but because packaging couldn’t keep up. TSMC is doubling CoWoS capacity, but the episode showed how sensitive the stack has become and how much everything now depends on packaging. But packaging is not the only place TSMC is innovating. It is also pushing the limits of the chip itself…” (Click here to read the full text)