Billionaire Ken Fisher’s 10 Technology Stock Picks with Huge Upside Potential

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

Number of Hedge Fund Holders as of Q4: 186

Fisher Asset Management’s Equity Stake: $5.60 Billion 

Upside Potential as of April 30: 33.41%

Taiwan is a global powerhouse in semiconductor manufacturing, largely due to the dominance of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), the world’s largest dedicated foundry. TSMC plays a critical role in the global tech supply chain, producing chips for major technology firms including Apple, AMD, and NVIDIA. Known for its technological leadership, TSMC is at the forefront of advanced chip manufacturing, with its 3-nanometer (nm) process technology already contributing significantly to its operations. As of the first quarter of 2025, 3nm chips made up 22% of TSMC’s total wafer revenue, while 5nm and 7nm accounted for 36% and 15%, respectively. Altogether, advanced technologies (7nm and below) represented a dominant 73% of total wafer revenue, underscoring the company’s technological edge.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) reported first quarter 2025 revenue of $25.53 billion, a 35.3% increase year-over-year, though slightly down 5.1% from the previous quarter due to typical seasonal trends in smartphone demand. The company posted strong profitability metrics with a gross margin of 58.8%, an operating margin of 48.5%, and a net profit margin of 43.1%. Net income and diluted earnings per share (EPS) rose sharply by 60.3% and 60.4%, respectively. Although revenue is expected to dip 5.5% in Q1 due to seasonality, sales are forecasted to recover mid-year, with a 38% year-over-year revenue increase projected by the end of the second quarter of 2025, driven by growing demand for 3nm and 5nm chips.

Ken Fisher’s Fisher Asset Management holds a 2.22% stake in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), reflecting investor confidence in the firm’s long-term prospects despite its modest portfolio weight. The stock is viewed as having substantial upside potential, with analysts projecting a possible 33.41% increase in share price. TSMC’s strong fundamentals, leadership in advanced manufacturing processes, and central position in the semiconductor value chain continue to make it a critical player in global technology infrastructure and a key investment target in the tech sector.

Middle Coast Investing stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q1 2025 investor letter:

“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the company we own with the most obvious geopolitical risk, and we cut our position in half. I know that if Taiwan-China flares up the damage will extend much wider, but TSM would seem to be the first domino there. And it’s not as if Taiwan is having an easy time of it with the current U.S. administration.”