5 Semiconductor Stocks With Growth Potential

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

Number of Hedge Fund Holders: 67

The Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s leading contract chip manufacturer. It manufacturers semiconductors using designs provided to it by its customers, and has some of the largest consumer electronics firms’ on its list.

For its Q4, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) reported $15.7 billion in revenue and $1.15 in GAAP EPS, beating analyst estimates for EPS only. It also kicked off pilot production of its leading-edge 3-nanometer (nm) manufacturing process in December, sticking to the plan revealed by CEO Dr. C.C. Wei at the Q3 earnings call.

Cowen set a $120 price target for the company in October 2021, stating that while the demand for its products is strong, it might peak soon. An Insider Monkey poll of 867 hedge funds in Q3 2021 revealed that 67 held a stake in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM).

L1 Capital mentioned the chipmaker in its 3Q21 investor letter, which outlined that:

“Even though they are not majority State owned and we would expect many of China’s technology champions to continue to grow strongly, outcomes for shareholders may be unsatisfactory… The Fund has retained its investment in Taiwan Semiconductor Manufacturing Company (TSMC) which is well placed to maintain its global leadership in semiconductor manufacturing. Due to geopolitical risks, we limit the position size of TSMC in the Fund.”