5 Best Semiconductor Stocks to Buy Now

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In this article, we discuss the 5 best semiconductor stocks to buy now. If you want to find out about more stocks and the industry in general, check out 13 Best Semiconductor Stocks to Buy Now.

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

Number of Hedge Fund Holders: 72

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest contract chip manufacturer. The company is responsible for manufacturing chips for some of the largest technology firms in the world, and it is headquartered in Hsinchu, Taiwan.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the leading chip manufacturing company in the world when it comes to manufacturing technology. Through remarkable progress over the past couple of years, its technologies are now nearing parity with those of U.S. chip giant Intel Corporation (NASDAQ:INTC) in terms of feature density and performance. Its revenues have grown by 48% between 2019 and 2021 and the firm generated a massive $9.8 billion in free cash flows last year. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) also pays a 59 cent dividend for a 3% yield.

Daiwa, known for its conservative estimates, upgraded Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s share price target to NT$645 from $NT550 in September 2022 as it estimated the firm to deliver strong revenue growth this year. 72 out of the 895 hedge funds polled by Insider Monkey for their Q2 2022 holdings had held a stake in the company.

Out of these, Ken Fisher’s Fisher Asset Management is Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s largest investor. It owns 26 million shares that are worth $2 billion.

Baron Funds mentioned the company in its Q2 2022 investor letter. Here is what the fund said:

“Semiconductor giant Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)detracted in the second quarter due to macroeconomic uncertainties 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.”

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