Jim Cramer Wants US To Be “As Good As” Europe & Discusses These 12 Stocks

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

Number of Hedge Fund Holders In Q1 2025: 187

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the most important companies in the world primarily due to the fact that it is responsible for manufacturing most of the world’s advanced AI and personal computing chips. The firm’s leading-edge chip manufacturing technologies are used by the world’s leading technology companies such as Apple and NVIDIA. Crmaer’s previous comments about Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) have compared the firm to NVIDIA especially since the latter relies on it for making its GPU chips. His latest comments maintained the opinion:

“Taiwan Semi was the proxy, as that went up you could buy NVIDIA.”

Cramer’s previous comments about Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) concerned the firm’s valuation particularly due to the impact of its location in Taiwan:

“Okay so I’m gonna give you, how to read that, you can dismiss it, but I’ll give it to you. Taiwan Semi, discount versus NVIDIA is how you look at it. The Taiwan Semi, the discount, it’s 17 versus 23 times earnings, that is simply the discount of, a, I don’t wanna say it, takeover, because that gets people scared. But an encroachment by the People’s Republic of China.”

“[On whether he thought there was a risk premium in chip stocks] Yes, because I was inquiring on why shouldn’t we be buying Taiwan Semi, and, the person said well yeah, why do you want that? You’re going to be watching every ship, every aircraft carrier, every drone and that’s why that’s 17 times earnings. It’s not just some aberration, it’s that there it is, that is the discount. And I think it’s a good way to look at it. I think that when you try to get certainty David, I like to find PE certainty. Because it’s like all we can count on. And there it is, like it’s bad.”