5 Semiconductor Stocks with Highest Upside Potential Right Now

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

Number of Hedge Fund Holders: 224

Upside Potential: 25.5%

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the best semiconductor stocks with the highest upside potential right now. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) announced on May 15 plans to execute the sale of up to 152.0 million common shares of Vanguard International Semiconductor Corporation, or around 8.1% of VIS’ fully-diluted paid-in-capital, through a block trade to financial institutional investors. The company currently has around 27.1% of VIS shares on a fully diluted basis, and anticipates reducing its shareholding to around 19% upon the completion of this share sale.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) does not plan to sell more VIS shares in the foreseeable future and stated that the proposed share sale would not affect the strategic relations between the company and VIS, which includes the outsourcing of interposer production and licensing of GaN technology to VIS.

In a separate development, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and Sony Semiconductor Solutions Corporation announced on May 8 the signing of a non-binding memorandum of understanding to form a strategic partnership to develop and manufacture next-generation image sensors. The two companies aim to establish a joint venture under the proposed partnership to set up development and production lines in Sony’s newly constructed fab in Koshi City, Kumamoto Prefecture.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the largest contract semiconductor manufacturer in the world. Some of its prominent customers include semiconductor companies that outsource all or part of their chip production, including Advanced Micro Devices, Nvidia, Broadcom, and more.