We recently released an article called Millionaire Ken Fisher's 10 Tech Stock Selections Offering Substantial Growth Prospects In this piece, we will examine how Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) measures up against other tech stocks.
In 2025, technology stocks experienced increased volatility, largely influenced by President Donald Trump’s stringent trade strategies. Tech equities had their most challenging day since the onset of the COVID-19 crisis following an announcement from Trump regarding comprehensive duties on all incoming products, particularly a substantial 34% tariff on items coming from China. This fueled anxieties about potential worldwide commercial conflicts. A leading manufacturer of iPhones spearheaded significant drops within what was known as the 'Magnificent Seven,' dropping more than 9% because of its heavy dependence on production facilities located in China. Various major players in the industry likewise saw dips ranging between 8% and 9%, whereas firms focused on semiconductors and personal computers suffered even steeper falls into double digits. Consequently, the NASDAQ index dropped by 6%, representing its largest single-day decline in half a decade and amplifying its cumulative drop for the year beyond 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 He has highlighted that although large technology companies frequently encounter challenges, they generally perform better during upward market trends and indicate greater overall market trust. According to his analysis, the surge in 2024 was broader than most people acknowledge, with technology and communications sector stocks spearheading this expansion. Despite these sectors typically suffering larger declines during downturns, their past history of robustness and advancement during economic upturns keeps them appealing for those looking at the long term. This illustrates why, despite considerable fluctuations, tech stocks maintain crucial importance for investment portfolios, especially as markets start picking up speed again.
Indications of a possible recovery emerged towards the end of April when key indices saw moderate growth on April 24th, largely driven by technology stocks spearheading this upturn. The positive investor sentiment was bolstered by news indicating renewed dialogue between the U.S. and China over trade issues, even though initial claims from Beijing were dismissive. President Trump's suggestion about potentially reducing certain tariffs further alleviated near-term concerns; however, overall doubt still looms large. Experts pointed out that the recent downturn in the tech sector had resulted in an oversold condition within the market, which could pave the way for temporary rebounds. Nonetheless, fluctuating financial statements alongside escalating expenses across various sectors persistently encourage prudence, highlighting how uncertain economic policies can unpredictably sway both the technological industry and wider stock exchanges.
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 do we focus on the stocks that hedge funds accumulate? It’s straightforward: our analysis indicates that mimicking the top choices from leading hedge funds allows us to surpass the broader market performance. Each quarter, our quarterly newsletter suggests 14 small-cap and large-cap stocks, delivering an impressive return of 363.5% since May 2014, which significantly outperforms its benchmark by 208 percentage points. see more details here ).
A detailed view of an intricate arrangement of integrated circuits utilized in logic semiconductors.
Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) TSM )
Number of Hedge Fund Holders for Quarter 4: 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) announced its first-quarter 2025 financial results, showing revenues of $25.53 billion. This represents a significant rise of 35.3% compared to the same period last year but marks a slight decline of 5.1% when contrasted with the prior quarter, largely attributed to regular seasonal patterns affecting smartphone market demands. In terms of profitability, TSMC demonstrated robust margins: a gross margin of 58.8%, an operating margin of 48.5%, and a net profit margin at 43.1%. Consequently, both net income and diluted EPS surged dramatically by 60.3% and 60.4%, respectively. Despite expectations indicating another drop of around 5.5% in revenue during this upcoming quarter owing primarily to seasonality effects, forecasts predict a rebound later in the year. Specifically, they anticipate a substantial growth projection of about 38% year over-year by the conclusion of the next fiscal half, fueled mainly by escalating needs for advanced semiconductor technologies such as their 3nm and 5nm chip offerings.
Kenneth Fisher’s Fisher Asset Management has invested in Taiwan Semiconductor Manufacturing Co Ltd (TSM) with a holding of about 2.22%, indicating an optimistic outlook for the company’s future growth even though this makes up only a small portion of their overall holdings. Analysts forecast a significant rise in the stock's valuation, estimating a potential surge of around 33.41%. This appreciation is supported by TSMC’s robust financial health, dominance in cutting-edge production techniques, and pivotal role within the semiconductor supply network, solidifying its importance in worldwide technological infrastructures and positioning it as a prime choice for investments in the tech industry.
In its Q1 report for 2025, Middle Coast Investing provided commentary on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). investor letter :
"Taiwan Semiconductor Manufacturing Company Limited" remains unchanged as it is a proper noun. (TSX:TPX.B) is the stock where we face the greatest geopolitical risks, so we decided to reduce our stake significantly. While I understand that tensions between Taiwan and China could have far-reaching consequences, TSMC appears to be particularly vulnerable in such a scenario. Moreover, Taiwan isn’t finding it easy dealing with the present US government."
Overall TSM ranks 8th Among billionaire Ken Fisher’s technology stock recommendations with significant growth prospects, we recognize the potential of TSM as an investment. However, we firmly believe that AI stocks offer even better opportunities for achieving higher returns more quickly. One particular AI stock has seen gains since early 2025, whereas many well-known AI stocks have declined by approximately 25% during the same period. For those seeking an AI stock that looks more appealing than TSM yet trades below five times its earnings, consider reviewing our detailed analysis presented in our latest report. cheapest AI stock .
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Disclosure: None. This article is originally published at Insider Monkey .
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