5 Best Fundamental Stocks to Invest in According to Billionaires

Page 5 of 5

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

Number of Billionaire Investors: 49

Number of Hedge Fund Holders: 224

3-year Revenue Growth: ~21.6%

3-year EPS Growth: ~24.1%

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the Best Fundamental Stocks to Invest in According to Billionaires. On April 22, Reuters reported that the company is targeting to open a chip packaging plant in Arizona by 2029. Modern AI chips, like the ones made by Nvidia, ‌are not single chips. These are several chips that are brought together, possessing advanced packaging technologies, Reuters said. This step has become a supply bottleneck for Nvidia and other companies.

Reuters, while quoting Kevin Zhang (Deputy co-chief operations officer and Senior vice president), noted that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) plans to build a CoWoS capability and 3D-IC capability before ​2029. Here, the key personnel pointed to 2 of the company’s ​packaging technologies, which are in high demand.

In 2024, Amkor and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stated that ⁠they will work together in bringing several of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s advanced packaging technologies to Arizona. The technology discussions of both companies are ongoing, noted Reuters while quoting Zhang.

Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) is the leading semiconductor foundry, which is engaged in the manufacturing of semiconductor chips.

While we acknowledge the potential of TSM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TSM and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 Best FMCG Stocks to Invest In According to Analysts and 11 Best Long-Term Tech Stocks to Buy According to Analysts.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 5 of 5