5 Best Reddit Stocks To Invest In

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

Number of Hedge Fund Holders: 72

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a Hsinchu, Taiwan-based designer and manufacturer of semiconductor chips.

The Reddit community is bullish on the stock as it is currently valued at the lower end of its historical range over the past ten years. The forward price-to-earnings ratio stands at 10.4, while the forward EV/EBITDA indicator is at 6.2, reflecting the lowest levels since 2016. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has been termed as one of the best Reddit stocks due to the strong demand for the company’s offerings. Furthermore, the Reddit community thinks the current stock price has already factored in the geopolitical tension between the US and China regarding Taiwan. Meanwhile, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is working on hedging the geopolitical risk by expanding its operations in Japan. In a research note issued on October 14, Bruce Lu at Goldman Sachs gave Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock a target price of $89, along with a Buy rating.

Baron Funds shared its long-term bullish outlook on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q3 2022 investor letter. Here’s what the firm said:

“Semiconductor giant Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) detracted from performance due to the global macroeconomic slowdown and softening demand for consumer electronics. We retain conviction that Taiwan Semi’s technological leadership, pricing power, and exposure to secular growth markets, including high-performance computing, automotive, and IoT, will allow the company to deliver strong revenue growth over the next several years.”