Goldman Sachs Semiconductor Stocks: Top 5 Picks

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

Number of Hedge Fund Holders: 72

Goldman Sachs’ Stake Value: $1,322,375,000

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the biggest manufacturers and distributors of integrated circuits and other semiconductor devices worldwide. Goldman Sachs owns 16.17 million shares of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as of Q2 2022, worth $1.3 billion and representing 0.29% of the total portfolio. It is one of the most prominent Goldman Sachs semiconductor stocks to watch. 

On October 13, Goldman Sachs analyst Bruce Lu downgraded Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) to Buy from Conviction Buy with a price target of $89, down from $126. The analyst noted that the management has turned “more conservative”, as it has acknowledged the impact from demand weakness, especially for its N7 nodes. TSMC management has also guided down 2022 capex to $36 billion from approximately $40 billion, partially due to uncertain demand, the analyst added.

According to Insider Monkey’s data, 72 hedge funds were long Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) at the end of Q2 2022, compared to 81 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the leading position holder in the company, with 26.3 million shares worth $2.15 billion. 

Baron Funds made the following comment about Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q3 2022 investor letter:

“Semiconductor giant Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) detracted from performance due to the global macroeconomic slowdown and 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 strong revenue growth over the next several years.”