12 Stocks Most Bought by Hedge Funds in Q1 2026

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

Number of Hedge Fund Holders: 234

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) ranks among stocks most bought by hedge funds in Q1 2026. On May 28, Reuters reported that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) said that the rapid growth of AI is increasing electricity demand and making energy efficiency a more important challenge than computing power in future computer chip development.

Kevin Zhang, Senior Vice President of Business Development at Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), told reporters at a conference in Amsterdam that “the area customers most want improvement in is energy efficiency. ⁠This is true across the board, whether you are the edge guy, smartphone, mobile, IoT ​application, or high-performance AI data center.”

Zhang pointed out that improving transistor density remains a key part of Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) roadmap. However, he explained that other approaches, including advanced packaging, chip stacking, and photonics, are becoming more important in improving efficiency.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) expects its chips to reduce power consumption by as much as 30% between its current N2 technology and its A14 generation, which is expected around 2028, while also offering over 20% higher computing performance.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a Taiwanese multinational semiconductor contract manufacturing and design company that manufactures, packages, and tests integrated circuits for various industries.

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