Is Taiwan Semiconductor Manufacturing (TSM) the Best WallStreetBets Stock to Buy According to Hedge Funds?
From Yahoo Finance: 2025-04-19 16:08:00
The World Economic Forum’s Global Retail Investor Outlook 2024 highlights a shift towards younger retail investors, with 30% of Gen Z starting investing early, compared to 9% of Gen X and 6% of Baby Boomers. Gen Z shows more interest in personal investing, marking a generational change in financial habits.
Retail investors find cryptocurrency more understandable than traditional investments, with 29% avoiding stocks due to lack of understanding. Among investors under 44 holding crypto, over half allocate at least a third of their portfolio to it. Cryptocurrency remains attractive due to perceived ease of understanding.
Financial priorities are shifting towards short-term needs, with 51% focusing on emergency savings in 2024, up from 41% in 2022. Retirement savings emphasis decreased from 48% to 42%. Individual participation in capital markets can lead to long-term financial well-being, according to WEF’s research.
Individual investors are keeping pace with US market volatility, investing $11 billion in equities since April 2, 2025. Retail traders’ portfolios are yet to reach breakeven despite dip-buying strategies. Institutional investors are shifting to international markets and less risky assets amid trade fears, as reported by Bloomberg.
Taiwan Semiconductor Manufacturing Company Limited (TSM) is ranked among the best WallStreetBets stocks by hedge funds. The company expects robust demand for its 3nm and 5nm technologies in Q2 2025, fuelled by AI-related growth. TSM anticipates revenue CAGR near 20% in US dollar terms until 2029, with long-term gross margins at 53% or higher.
Sands Capital’s Q4 2024 investor letter praised TSM for its strong demand in AI chips, leading to revenue and earnings growth. TSMC’s revenue outlook was revised upwards, with a focus on capital expenditure for future revenue growth. TSM ranks 3rd on the list of best WallStreetBets stocks, with potential for higher returns in AI stocks.
Overall, TSM is a top WallStreetBets stock, but undervalued AI stocks may offer higher returns in a shorter time frame. An AI stock has shown gains in 2025 while popular AI stocks have declined. For a promising AI stock trading at less than 5 times its earnings, explore Insider Monkey’s report on the cheapest AI stock for significant potential returns.