14 Best IT Stocks to Buy for the Long Term

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

5-Year Revenue Growth: 22.53%

Number of Hedge Fund Holders: 187

With strong revenue growth and significant hedge fund interest, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) secures a spot on our list of the 14 Best IT Stocks to Buy for the Long Term.

On August 13, 2025, Bank of America Securities reaffirmed its ‘Buy’ rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) with a $290 price target. The bullish stance reflects the company’s strong likelihood of exemption from proposed U.S. Section 232 semiconductor tariffs.

The investment firm also highlighted Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s multi-phase Arizona investment, which is a key factor protecting the company from trade risks. At the same time, the investment enhances the company’s competitive positioning against peers with smaller U.S. footprints.

Thanks to its resilient demand in AI and high-performance computing segments, minimal earnings impact is expected for Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) even under a tariff scenario. Investor confidence remains strong amid continued AI-driven growth and a projected 18x P/E multiple by 2026.

Taiwan Semiconductor makes and sells integrated circuits and semiconductor devices globally. It is one of the best IT stocks.

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