5 Best Tech Stocks to Buy According to Japanese Billionaire Masayoshi Son

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

Number of Hedge Fund Holders: 76  

Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) is placed third on our list of 10 best tech stocks to buy according to Japanese billionaire Masayoshi Son. The stock has returned over 111% to investors in the past year. The firm makes and sells semiconductor chips used in electronic devices globally. SB Management owns more than 11 million shares in the semiconductor company that are worth over $1.3 billion, representing 8.5% of the investment portfolio.

On June 11, news publication Nikkei Asia reported that Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) was mulling over opening a semiconductor packaging facility in the United States in what would be the firm’s first such venture out of Taiwan. 

At the end of the first quarter of 2021, 76 hedge funds in the database of Insider Monkey held stakes worth $10.8 billion in Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM), up from 72 in the preceding quarter worth $11.8 billion. 

In its Q1 2021 investor letter, Bonsai Partners, an asset management firm, highlighted a few stocks and Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) was one of them. Here is what the fund said:

“Taiwan Semiconductor is the world’s largest outsourced foundry of logic semiconductor chips. TSMC’s shares appreciated 8.9% during the quarter.

Similar to last quarter, the supply-demand imbalance in semiconductor chips continues to benefit TSMC. To fuel new technological advances and meet the current supply imbalance, we see significantly increased capital spending across the industry over the coming years.

TSMC has an extraordinary track record of return on these large investments despite their rapid historical cadence of expansion. I remain hopeful that the large capital expenditure plan they now have ($100 billion of investment over the next three years) will be money well spent and not lead to industry oversupply in the medium term. Hopefully, future returns on these investments will look as good as those of the past.”