5 Best Semiconductor Stocks to Buy Now

In this article we discuss the 5 best semiconductor stocks to buy now. If you want to read our detailed analysis of the semiconductor industry, go directly to the 15 Best Semiconductor Stocks to Buy Now.

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

Number of Hedge Fund Holders: 76  

Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) is a multinational semiconductor corporation with production facilities in Taiwan and China. The semiconductor products manufactured by the company can be used in the industrial, automotive, electronic, and telecom industries. Recently, Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) has announced plans to expand its chipmaking facilities and plans to build one in Arizona, worth $12 billion. 

In Q1 2021, Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) reported a net income of NT$139.6 billion, showing a 19.4% year-over-year growth. The EPS for the quarter stood at $0.96, beating the market estimate of $0.94. The TSM stock saw its low of $44 in March 2020 due to the global market crash but is right on track, gaining 112% in the past year and 13.2% in the past six months. According to analysts, Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) is certainly going to benefit from the iPhone sales, as the company has already started delivering chips for the next iPhone model. In June, Argus initiated its coverage of TSM with a Buy rating and $150. 

At the end of Q1 2021, 76 hedge funds tracked by Insider Monkey have stakes in Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM), up from 72 in the previous quarter. The total value of these stakes is $10.8 billion. 

ClearBridge Investments released its Q1 2021 investor letter and mentioned Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) and other stocks in it. Here is what the firm has to say: 

“While we maintain high conviction in many of the emerging and secular growth names in the portfolio,–  we continue to hold Taiwan Semiconductor, the world’s largest foundry. Semiconductor shortages, caused by a combination of years of capacity reductions, COVID-19 lockdowns and better than expected rebounds in industries like autos, will cause short-term revenue pressure but are allowing companies to exert pricing power as they race to replenish depleted inventories.”