5 Most Profitable Blue Chip Stocks to Buy According to Hedge Funds

In this article, we will list the 5 Most Profitable Blue Chip Stocks to Buy According to Hedge Funds. Please visit 10 Most Profitable Blue Chip Stocks to Buy According to Hedge Funds if you’d like to see an extended list and the methodology behind it.

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

Number of Hedge Fund Holders: 234

With a profit margin of 47.34% and net income of $55.13 billion (FY25), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) ranks among the most profitable blue chip stocks to buy according to hedge funds. Meanwhile, analysts see 9.80% upside for the stock.

Those figures are backed by continued operational and financial strength.

In mid-April, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) reported first-quarter profit of $18.2 billion, up 58% year-over-year, and its eighth straight quarter of double-digit growth. CEO C.C. Wei raised the full-year revenue growth forecast to more than 30% in U.S. dollar terms, up from a prior outlook of close to 30%, and said capital expenditure would come in at the high end of its $52 billion to $56 billion guidance range.

For the second quarter, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) guided revenue between $39 billion and $40.2 billion. Wei described AI-related demand as extremely robust and said TSMC’s conviction in the multi-year AI megatrend remains high.

The most recent data point arrived on June 10, 2026, when Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) reported consolidated net revenue of NT$416.98 billion for May 2026, up 1.5% from April and 30.1% year-over-year. Revenue for the first five months of the year reached NT$1.96 trillion, a 30.0% increase over the same period in 2025.

That backdrop aligns with a broader industry outlook, as on the same day, UBS analyst Nicolas Gaudois projected that global semiconductor revenues will reach $2.38 trillion by 2027, driven by agentic AI lifting demand across the memory, logic, and CPU segments. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was named among the firm’s preferred stocks, with foundry utilization rates and memory industry operating profits among the cycle indicators UBS described as pointing upward into late 2027.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a Taiwanese multinational semiconductor contract manufacturing and design company that manufactures, packages, and tests integrated circuits for various industries.