We recently published an article titled Billionaire Ken Fisher’s 10 Technology Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stands against the other technology stocks.
Technology stocks have faced heightened volatility in 2025, with market sentiment swinging sharply in response to President Donald Trump’s aggressive trade policies. On April 3, tech shares endured their worst day since the COVID-19 pandemic as Trump announced sweeping tariffs on all imported goods, including a 34% duty on Chinese imports, exacerbating fears of a global trade war. An iPhone maker led the steep declines among the “Magnificent Seven,” plummeting over 9% due to its reliance on Chinese manufacturing. Other tech giants also fell between 8% and 9%, while semiconductor and PC companies recorded double-digit losses. The tech-heavy NASDAQ tumbled 6%, marking its worst session over five years and deepening its year-to-date loss to more than 14%.
Despite the recent turmoil, broader optimism about technology and growth stocks remains underpinned by longer-term trends. Notably, Ken Fisher of Fisher Asset Management has emphasized that while mega-cap tech firms often face headwinds, they tend to outperform during bullish cycles and reflect broader market confidence. He argues that 2024’s rally was more expansive than many recognize, with tech and communication services stocks leading growth across the board. While tech stocks often decline more in bearish periods, their historical track record of resilience and growth during recoveries continues to make them attractive for long-term investors. This underscores why, even amid significant volatility, tech stocks retain strategic value for portfolios, particularly when the market regains momentum.
Signs of a potential rebound appeared later in April, as major indexes recovered modestly on April 24, with tech shares helping lead the rally. Investors responded positively to reports that the U.S. and China had resumed trade talks, despite earlier denials from Beijing. Trump’s announcement that some tariffs might be rolled back helped ease immediate fears, although uncertainty remains high. Analysts noted that the recent tech selloff had left the market oversold, setting the stage for short-term gains. However, mixed earnings reports and rising costs across industries continue to fuel caution, reinforcing the unpredictable nature of trade policy’s impact on tech and broader equity markets.
Our Methodology
For this article, we scanned Fisher Asset Management’s Q4 2024 13F filings to identify billionaire Ken Fisher’s technology stock picks with the highest upside potential. We compiled the tech equities with upside potential higher than 27% at the time of writing this article and discussed why they stood out as sound potential investments. Finally, we ranked the stocks based on the ascending order of their upside potential. To assist readers with more context, we mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds 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 363.5% since May 2014, beating its benchmark by 208 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)
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.”
Overall TSM ranks 8th among billionaire Ken Fisher’s technology stock picks with huge upside potential. While we acknowledge the potential of TSM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks 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.
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Disclosure: None. This article is originally published at Insider Monkey.