Analyst praises Taiwan Semiconductor Manufacturing's valuation and monopolistic position, calling it the top stock.

From Yahoo Finance: 2025-04-27 12:05:00

In a recent list of top stocks to watch for May, Taiwan Semiconductor Manufacturing Company Limited (TSM) stands out. Aswath Damodaran from NYU Stern School of Business warns against reactionary investing, urging investors to avoid daily news cycles that damage portfolios. Hedge fund sentiment is crucial for outperforming the market.

Doug Clinton from Intelligence Alpha praises TSM’s valuation and monopolistic position in chip manufacturing, stating there is ‘no alternative’ to TSM. Middle Coast Investing expresses caution due to geopolitical risks involving Taiwan-China relations and the current U.S. administration. TSM ranks 2nd on the top stocks to watch list for May.

Investors are urged to focus on under-the-radar AI stocks for higher returns within a shorter time frame. While TSM holds promise, an AI stock with massive upside potential and trading at less than 5 times its earnings is recommended for consideration. Analysts emphasize the importance of strategic investment choices in the current market landscape.

Read more: Analyst Says ‘No Alternative’ for Taiwan Semiconductor Manufacturing (TSM), Calls Valuation ‘Cheap’