We recently published a list of 12 Best Major Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stands against other best major stocks to buy according to billionaires.
The U.S. stock market had one of the worst starts, at least the worst start to a presidency since 1928. The S&P 500 is just recovering following the latest U.S.-China trade deal update, as both countries have agreed to significantly cut tariffs on each other’s imports for 90 days. The S&P 500 index is up by a meagre 0.30% year-to-date, as tech stocks rallied following the tariff reduction.
ALSO READ: 13 Best Technology Stocks to Buy for Long-Term Investment
Tariffs on Hold
Markets finally had a sigh of relief after the U.S.-China trade deal. The tariff reduction potentially negates all bear cases anticipated by Wall Street analysts based on the tariff risks. Sylvia Jablonski, CEO and CIO of Defiance ETFs called the tariff cut a “game changer” in a recent appearance on a CNBC show.
“I think both countries probably saw a little bit of the demise of what would be here with a non-tariff deal as the data came in. You had a lot of complaints around China across all sectors, and then in the US, retailers were reaching out to President Trump and saying that shelves are empty and, you know, a lot of panic about semiconductor software companies. I think that this is really a game changer for both countries, and the big message here is that both countries, it sounds like, decided that they really don’t want to decouple, and, you know, make America great might also mean that, you know, China stays.”
President Trump’s Betting Big on AI
President Trump and his team at the White House have secured around $2 trillion in new company investments since Inauguration Day. The administration emphasizes that these investments indicate a broad economic renaissance. The tech giants are investing following the President’s plan to bring investments into the US. According to Yahoo Finance, these investments are mainly clustered in the world of Big Tech and largely come from sectors where Trump’s Final tariff plans are most uncertain.
Apple and Nvidia have promised to invest $500 billion each in AI infrastructure, manufacturing, and training. Healthcare and new pharmaceutical manufacturing account for almost 11% of the total investments to be made in the U.S., as per Yahoo Finance.
Our Methodology
We have listed the 12 Major Stocks to Buy According to Billionaires, according to Insider Monkey’s database. We picked the 12 stocks with the highest number of billionaire investors, updated as of Q4 2024. All of these billionaire investors are founders or managers of some of the top hedge funds in the world. We have also mentioned the number of hedge funds holding stakes in these stocks. The best major stocks are ranked in ascending order of the number of billionaires that have stakes in them.
Why are we interested in the stocks that hedge funds and billionaire investors pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close-up of a complex network of integrated circuits used in logic semiconductors.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
No. of Billionaire Holders: 30
No. of Hedge Fund Holders: 186
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a Taiwan-based company that designs and manufactures semiconductors. The company targets various end markets, including high-performance computing, Internet of Things (IoT), smartphones, automotive, and digital consumer electronics. TSM sells its chips and semiconductor equipment to leading tech companies worldwide, including Nvidia, AMD, Apple, Broadcom, Marvell, and Qualcomm, among others.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) overcame the smartphone seasonality challenges and an earthquake. During Q1 2025, the company posted $25.78 billion in revenue, beating estimates by $59.12 million. TSM experienced strong demand for its 7-nanometer and below category wafers, as the advanced technologies segment accounted for 73% of the wafer revenue. The company expects a 13% increase in Q2 revenue from Q1, driven by robust demand for 3- and 5-nanometer technologies. On top of that, the company plans to double its CoWoS capacity in 2025 to meet the growing AI-related demand. The company has also announced an additional $100 billion investment plan to expand its capacity in Arizona. This shows TSM’s commitment to meeting growing customer demand and providing a safe passage against the tariffs.
On April 28, BofA analyst Brad Lin maintained its Buy rating on TSM, keeping the price target at $220. Lin remains optimistic regarding TSM’s future following the company’s 2025 Technology Symposium in North America. The company demonstrated its unwavering dedication to tech leadership, breakthrough innovations in AI, and its growing footprint in the automotive and IoT sectors.
Overall, TSM ranks 5th on our list of best major stocks to buy according to billionaires. While we acknowledge the potential of TSM to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that has gone up since the beginning of 2025, while popular AI stocks have lost around 25%. If you are looking for an AI stock that is more promising than TSM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
