5 Best EV Materials Stocks to Buy

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

Number of Hedge Fund Holders: 76  

Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) is a company that makes and sells integrated circuits and semiconductors. It is headquartered in Taiwan and is ranked first on our list of 10 best EV materials stocks to buy. The circuits and semiconductors made by the firm are used by EV firms. The company beat market expectations on earnings per share in the second quarter. It has a market cap of over $550 billion and posted more than $47 billion in revenue last year.  

On June 22, investment advisory Argus initiated coverage of Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) stock with a Buy rating and a price target of $150, noting that the firm was emerging as a solutions provider in the global electronic industry supply chain.

At the end of the first quarter of 2021, 76 hedge funds in the database of Insider Monkey held stakes worth $10.8 billion in Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM), up from 72 in the preceding quarter worth $11.8 billion. 

In its Q1 2021 investor letter, Bonsai Partners, an asset management firm, highlighted a few stocks and Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) was one of them. Here is what the fund said:

“Taiwan Semiconductor is the world’s largest outsourced foundry of logic semiconductor chips. TSMC’s shares appreciated 8.9% during the quarter.

Similar to last quarter, the supply-demand imbalance in semiconductor chips continues to benefit TSMC. To fuel new technological advances and meet the current supply imbalance, we see significantly increased capital spending across the industry over the coming years.

TSMC has an extraordinary track record of return on these large investments despite their rapid historical cadence of expansion. I remain hopeful that the large capital expenditure plan they now have ($100 billion of investment over the next three years) will be money well spent and not lead to industry oversupply in the medium term. Hopefully, future returns on these investments will look as good as those of the past.”

You can also take a peek at 10 Best EV Stocks To Buy Now and 10 Best EV Startups to Watch.

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