Unlock the Secrets of Billionaire Investors
When it comes to investing, following the lead of billionaire hedge fund managers can be a wise strategy. These investors didn’t reach their status by making reckless decisions. With over $100 million in assets, they’re required to disclose their quarterly holdings to the Securities and Exchange Commission (SEC), giving us a glimpse into their investment strategies.
A Stock That Caught the Attention of Two Billionaires
One stock that caught the attention of two billionaires I follow is Taiwan Semiconductor Manufacturing (NYSE: TSM). As the world’s largest third-party chip foundry, Taiwan Semiconductor produces cutting-edge chips for tech giants like Apple and Nvidia. The company’s commitment to innovation has enabled it to stay ahead of the curve in the chip industry.
The Cutting-Edge of Chip Technology
In the world of chips, advancements come in the form of new and smaller “process nodes.” Taiwan Semiconductor has mastered the art of reducing transistor sizes and increasing chip density, resulting in more powerful, faster, and energy-efficient chips. The latest 3-nanometer (3nm) process node is a testament to the company’s innovative spirit.
Growing Demand for Advanced Chips
Demand for 3nm chips has been significant, with Taiwan Semiconductor reporting a 20% revenue contribution in the most recent quarter. But the company isn’t stopping there. It’s gearing up to produce 2nm chips in 2025, which promises to be even more energy-efficient than its predecessors. This new technology is expected to be a game-changer for GPU makers like Nvidia, allowing them to create products with reduced power consumption.
A Compelling Investment Case
Taiwan Semiconductor’s financials back up its impressive growth story. In Q3, the company reported 39% revenue growth in New Taiwan dollars, translating to 36% growth in U.S. dollars. Earnings per share (EPS) rose 54% in NT dollars. Wall Street analysts predict a 25% revenue increase and 26% EPS growth in 2025, driven by AI demand and investments in new chip technology.
A No-Brainer Investment Opportunity
With a price-to-earnings ratio of just 20 times 2025 earnings, Taiwan Semiconductor presents a compelling investment opportunity. The company’s chip manufacturing technology is unmatched, and its growth rates validate its position as a leader in the AI arms race.
Don’t Miss Out on the Next Big Opportunity
If you’re worried about missing out on the next big investment opportunity, now is the time to act. Our team of analysts has identified three incredible companies that are poised for growth. Don’t wait until it’s too late – see our “Double Down” stock recommendations today.
Leave a Reply