5 Best Stocks to Invest In According to Billionaire Steve Cohen

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

Point72 Asset Management’s Stake: $1.4 Billion

Even though Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) first appeared in the 13F portfolio of Point72 Asset Management back in 2015, it has not been a consistent feature in the historical portfolio of the fund. 2021 onwards, however, the chip stock has appeared in the holdings constantly. Latest filings, submitted at the end of the fourth quarter of 2025, show that the fund owned 4.6 million shares in the company, up 157% compared to filings for the third quarter of 2025. Previously, the largest stake in the firm by the fund consisted of almost 2.5 million shares, disclosed in the fourth quarter of 2024.

Hedge funds love Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock for a variety of reasons. The single most significant catalyst for institutional buying in early 2026 was the official launch of mass production for 2-nanometer chips in January. TSMC is the first in the world to achieve high-volume manufacturing with Gate-All-Around (GAA) transistors at the 2nm node. Hedge funds are focused on the fact that over 50% of 2nm capacity through 2027 has already been pre-ordered by Apple, NVIDIA, and AMD. Wafers for the 2nm node are reportedly priced at $30,000, a 20% premium over the 3nm generation, ensuring massive margin expansion for the company.