5 Best Falling Stocks To Buy Now

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In this article, we shall talk about the 5 best falling stocks to buy now. If you wish to read our detailed analysis of the latest market situation,  go directly to 11 Best Falling Stocks To Buy Now.

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

Number of Hedge Fund Holders: 81

Year-to-Date Share Price Decline (as of August 9): 31.72%

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest semiconductor foundry, producing chips for clients including Apple, NVIDIA, and AMD, among others. Shares have fallen more than 31% in the year to date as of August 9, as lockdown disruptions, supply chain issues, and the looming threat of the Chinese invasion of Taiwan put TSM stock under pressure.

But given the firm’s crucial and dominant role in powering the global tech industry, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stands as a recession-proof stock that offers long-term security.

On August 3, Northland analyst Gus Richard reiterated an ‘Outperform’ rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) shares and increased the price target to $105 from $95. The analyst thinks that lead times for wafers out of the company will limit upside over the remainder of 2022, but server market share momentum will accelerate heading into 2023. The analyst also contends that rival Intel (NASDAQ:INTC) cannot catch up with Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in terms of server CPU leadership until 2024.

For Q2 2022, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) posted $17.83 billion in revenue, growing 33.9% from the year-ago quarter and beating estimates by $327.19 million. EPS of $1.55 also came in above analysts’ forecasts by $0.05. 

Hedge funds increased their exposure to Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) during the first quarter of 2022. 81 hedge funds were long TSM at the end of March, as compared to 72 hedge funds at the close of December.

Here is what ClearBridge Investments had to say about Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q2 2022 investor letter:

“Disciplined selling is a key component of our risk-based approach, especially among companies with cyclical growth drivers. We have seen good success over the last several years from our semiconductor exposure but have been taking profits in companies such as, this quarter in Taiwan Semiconductor (NYSE:TSM) to reduce overall industry exposure. Given the exceptional sets of circumstances of semi shortages, double ordering and good growth in end market products including personal electronics and even data centers, we believe a neutral market position to this industry within the tech sector is appropriate.”


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