5 Technology Stocks To Buy That Are Too Cheap To Ignore

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

Share Price as of October 15, 2022: $63.89

Number of Hedge Fund Holders: 72

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest contract chip manufacturer. The firm offers its services to some of the largest companies in the world, including Apple, Intel, AMD, and Qualcomm. It is headquartered in Hsinchu, Taiwan.

The Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is currently moving forward with mass producing its 3 nanometer chips. These are the most advanced in the world, and TSMC is a market leader in its space, with the bulk of the share and miles ahead of the second largest player, the Korean chaebol Samsung’s chip division Samsung Foundry.

A testament to Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s strength is that the firm reported 36% annual growth in its third fiscal quarter of 2022 at a time when the chip sector is facing a historic downturn. At the same time, a strong U.S. dollar led the firm to post its largest gross margin of 60.4% in its history, since it earns its revenue in dollars and pays out its costs in local currency.

By the end of this year’s June quarter, 72 out of the 895 hedge funds polled by Insider Monkey had invested in the Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM).

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s largest investor in our database is Ken Fisher’s Fisher Asset Management which owns 26 million shares that are worth $2 billion.

RiverPark Funds mentioned the company in its Q2 2022 investor letter. Here is what the fund 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.”