Investors are advised to consider Taiwan Semiconductor Manufacturing Company Limited (TSM) as a top foreign stock

From Yahoo Finance: 2025-04-02 09:49:00

In a recent article, we analyze the standing of Taiwan Semiconductor Manufacturing Company Limited (TSM) among the best foreign stocks to invest in, as per billionaires’ preferences. The global economy maintained a 3.2% annualized growth rate in 2024 but is now forecasted to slow down due to rising trade restrictions and policy updates impacting investment opportunities.

Analysts caution that the US stock market is losing momentum and no longer benefits from high fiscal spending and lenient policies, while Chinese competitors are producing tech at a fraction of the cost. Investor focus on foreign markets like Japan and Europe, where stocks are cheaper and value stocks are outperforming growth counterparts, is advised.

Taiwan Semiconductor Manufacturing Company Limited (TSM) is the largest pure-play semiconductor company globally, with an Outperform rating and a price target of $258. TSM plans to invest $100 billion in the US to reduce dependence on Asian production. In Q4, TSM was found in 30 billionaire stock portfolios and recorded strong financial performance in the last quarter, driven by demand for advanced chips.

TSM ranks 1st among the best foreign stocks to buy according to billionaires, but certain AI stocks may offer higher returns in a shorter time frame. While TSM’s growth potential is acknowledged, other AI stocks may be more promising. For those interested in AI stocks trading at less than 5 times earnings, a report on the cheapest AI stock is available.

Read more: The Best Foreign Stock to Buy According to Billionaires