13 Best Extremely Profitable Stocks to Invest in According to Hedge Funds

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

Number of Hedge Fund Holders: 194

As of February 2, 2026, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) maintains bullish analyst sentiment, with a consensus price target of $410. This implies upside potential of 24.03%, after the stock has already surged 40.54% over the past six months and over 10% in 2026. Nearly all the analysts maintain a bullish rating on the stock.

As a sign of confidence in the company’s long-term AI-driven demand, Bloomberg reported on January 15, 2026, that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) plans capital spending of $52–$56 billion in 2026, an increase of at least 25% compared to 2025. The company’s U.S.-listed ADRs are expected to increase by 5.6% in 2026, with revenue growth projected to reach roughly 30%, which beats average analyst expectations.

Amid strong broader analyst sentiment, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) drew TD Cowen’s attention on January 16, 2026, when the firm increased its price target to $370 from $325 while keeping a ‘Hold’ rating. The update came in response to strong production execution and better-than-expected quarterly results.

Furthermore, Morgan Stanley raised its target by 5% to NT$2,088 on the same day, pointing to strong gross margins, rising demand for AI, and increased capital spending for advanced-node expansion. Meanwhile, Barclays raised its target to $450 with an ‘Overweight’ rating, describing the fourth-quarter results as strong across all areas.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures advanced integrated circuits and semiconductors for AI, computing, communications, automotive, and consumer electronics worldwide.