5 Semiconductor Stocks Popular Among Elite Hedge Funds

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

Number of Hedge Fund Holders: 81

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a manufacturer of integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the US, and internationally. The company provides complementary metal oxide silicon wafer fabrication processes to manufacture logic, mixed-signal, radio frequency, and embedded memory semiconductors.

Roland Shu, a Citi analyst, holds a Buy rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) shares as of this July.

The company’s EPS in the second quarter of 2022 was $1.6, beating estimates by $0.1. Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) revenue was $17.8 billion, also beating estimates by $327.2 million. Analyst Shu also believes that there is an upside to consensus estimates on the company’s earnings in the latter half of this year and 2023 due to Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) strong share gains. Such positive earnings and coverage has attracted many elite hedge funds in the first quarter.

Out of 912 hedge funds, 81 hedge funds were long Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in the first quarter. Their total stake value was $10.2 billion.

Wedgewood Partners, an investment management firm, mentioned Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its second-quarter 2022 investor letter. Here’s what they said:

“Taiwan Semiconductor detracted from performance despite a business performance that saw revenue accelerate to over +30% growth. The Company is one of the few fabs in the world that is capable of manufacturing leading-edge integrated circuits (IC). The Company’s leading-edge capacity is being absorbed by high-performance computing applications, particularly by Apple, which has become an integrated circuit powerhouse over the past decade. The Company’s aggressive investment in leading-edge equipment, tight development with fabless IC designers, and embrace of open development libraries should continue to foster a superior competitive position and attractive long-term growth.”