5 Semiconductor Stocks to Buy on the Dip

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

Number of Hedge Fund Holders: 81  

Percentage Decline in Share Price Over Past Six Months: 29.94% 

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) makes and sells integrated circuits and semiconductors. The firm has deals in place to supply chips to big firms like Apple and Volkswagen but has come under pressure in recent months as the US increases restrictions on business with Chinese chip firms. Reports indicate that Apple has already asked chip makers from China to relabel shipments to avoid this increased scrutiny. US lawmaker Nancy Pelosi recently met TSM founder Morris Chang during a visit to Taiwan. 

On July 12, Citi analyst Roland Shu maintained a Buy rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock with a price target of NT$570, appreciating the second quarter earnings beat of the firm. 

At the end of the first quarter of 2022, 81 hedge funds in the database of Insider Monkey held stakes worth $10.1 billion in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), up from 72 in the preceding quarter worth $10.9 billion. 

In its Q1 2022 investor letter, Baron Funds, 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:

“Semiconductor giant Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) detracted in the first quarter due to rising geopolitical tensions, macroeconomic uncertainties, and concerns over softening demand for consumer electronics. We retain conviction that Taiwan Semi’s technological leadership, pricing power, and exposure to secular growth markets, including high-performance computing, automotive, and IoT, will allow the company to deliver above its 15% to 20% revenue growth target over the next several years.”