Billionaire Stephen Mandel’s 5 Must-Buy Tech Stocks

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

Value of Lone Pine Capital‘s 13F Position: $832 million

Number of Hedge Fund Shareholders: 83

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) represents the largest tech position added to Lone Pine Capital’s 13F portfolio during Q1. The fund bought 7.98 million shares of the company in Q1, joining a growing cadre of hedge funds that are long TSM, as ownership of the stock among hedge funds hit a new high in the first quarter.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) shares have lost 41% in 2022 amid fears about the state of the broader chip market. TSM rebounded somewhat on July 7 thanks to Samsung’s strong quarterly results, which were buoyed by a strong showing from its own chip business, which surpassed Intel Corporation (NASDAQ:INTC)’s to become the global leader last year.

TSM also came into the limelight in early June when it was reported that a prominent Chinese economist was urging authorities to seize TSMC should China be hit with punishing sanctions as Russia has been. The economist noted TSMC’s expansion into the U.S, where it plans to build six fabs, and declared that “We must not let all the goals of the transfer be achieved.”

The Baron New Asia Fund is extremely bullish on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), as it predicted future revenue growth above the company’s own estimates while discussing the stock in its Q1 2022 investor letter:

“Semiconductor giant Taiwan Semiconductor Manufacturing Company Ltd. 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.”